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Tesla highlights low running costs to attract Indian buyers

Tesla has opened its largest sales and service center in Gurugram, India, as it looks to expand in the country’s EV market.

Tesla is targeting a small segment, as EVs account for about 5% of car sales in India, and most vehicles sell for under US$22,000.

The US-based automaker began selling imported Model Y cars in India in July 2025, with prices starting at around US$67,000 due to a 100% import tariff.

Since deliveries began in September, Tesla has sold just over 100 Model Ys in India, according to government data.

Sharad Agarwal, Tesla’s India general manager, said Indian buyers could save about US$22,000 in maintenance and fuel costs over four to five years compared to petrol cars.

Tesla competes locally with Mahindra & Mahindra, Tata Motors, SAIC Motor, and VinFast Auto.

The company is also starting to roll out its supercharger network in Mumbai, Delhi, and Gurugram.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

India’s EV tariff policy caps Tesla’s scale ambitions and local manufacturing timeline

  • India’s 100% import tariff lifts Model Y start price to about $67,000, which confines the pool of buyers to under 3,000 a year in the above Rs 50 lakh band 1.
  • The 2024 SPMEPCI offers a 15% duty cut if the automaker puts in Rs 4,150 crore and starts local output within three years 2. The company has not enrolled and keeps shipping cars from China 1.
  • Since September, sales sit a little over 100 units. The national EV market is about 100,000 a year 1, which cannot support Tesla’s smallest 250,000-unit plant 1. High duties blunt pricing without assembly at home.
  • The firm is opening stores and service bays to test demand before building, while global factories have spare capacity 3. India looks like a niche market, not a production base for now 1.

EV charging operators can capitalize on Tesla’s supercharger rollout in the National Capital Region (NCR) and Mumbai corridors

  • Superchargers are coming to Mumbai, Delhi, and Gurugram. Premium EV traffic will cluster on those corridors, which charge point operators (CPOs) can tap by siting near these routes and busy venues.
  • HPCL, a state-run fuel retailer, had 1,011 chargers by March 2022, with plans for 5,000 by 2023-24 4. State subsidies for charging 4 give CPOs room to win good revenue-share deals at fuel stations.
  • Payments firms should back Unified Payments Interface (UPI) flows. ACS Energy plans over 5,000 UPI-enabled points in Maharashtra and Gujarat 5, which fits local habits.
  • Property owners in Mumbai and NCR can earn by teaming with CPOs under the PM Electric Drive Revolution, a central-government program that offers subsidies for grid links and transformer upgrades 5.

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