Gurugram hub strengthens Tesla’s presence

Tesla opens its largest Indian sales and service hub in Gurugram while struggling with low demand. The facility combines a showroom, charging stations, and full after-sales services in one location. Dealership data shows Tesla sold just over 100 cars since its high-profile July debut.

Sources close to the company say Tesla now focuses on developing India’s EV ecosystem to revive interest. The company provides no direct response on weak sales figures. Media reports indicate Tesla received barely more than 600 bookings by mid-September. Only a small fraction of these bookings converted to sales after deliveries began. Competitors in the premium segment, including BMW, BYD, and Mercedes Benz, reported strong sales supported by festive demand and tax cuts.

Three-pronged approach targets adoption and service

Tesla plans a strategy to boost adoption, expand charging infrastructure, and enhance customer experience. Analysts say high taxes and slow EV uptake remain major obstacles. The high upfront price of Tesla vehicles also challenges potential buyers.

At the Gurugram launch, India head Sharad Agarwal said buyers can save up to two million rupees (22,400 dollars; 16,900 pounds) over four years on fuel and maintenance. He added that remote software maintenance reduces ownership costs and home charging costs only one-tenth of petrol prices.

Low sales may reflect a deliberate entry

Automotive editor Hormazd Sorabjee said Tesla’s current numbers are low by any standard. He believes the company uses a strategic approach and expects stronger sales in the future.

EVs account for less than three percent of India’s passenger vehicle market. Charging infrastructure grows slowly, with roughly 25,000 stations nationwide. Tesla cars can charge at home, gaining up to 44 miles of range per hour. The company is also expanding superchargers that deliver about 170 miles in 15 minutes.

Global slowdown adds pressure

Tesla’s weak India sales come amid a broader slowdown in Europe, China, and the United States. The company reported a profit decline in October despite record quarterly revenue from a last-minute surge by US buyers chasing an expiring tax credit. Revenue for the September quarter reached 28 billion dollars (21 billion pounds), a 12 percent increase from last year. Profits fell 37 percent due to higher tariff costs and research expenses.

In India, Elon Musk shows little interest in local manufacturing and continues an import-led strategy despite incentives introduced last March to attract global EV producers.