Der Model Y, der an Inder verkauft wird, hat einen Startpreis von 500.000 Yuan.

Yesterday, the first Tesla showroom in India opened on the streets of Mumbai. This means that after nine years, Elon Musk has finally managed to penetrate the Indian market.

However, this timing is very carefully calculated.

On the one hand, Musk has recently had a feud with Trump, and the two still don't get along. On the other hand, there is a risk of a decline in Tesla vehicle sales. In this difficult situation, Tesla is trying to explore new growth opportunities.

The Indian market is undoubtedly very attractive. But from a practical perspective, the price of Tesla vehicles is not very affordable for most Indians.

The minimum selling price is about 500,000 yuan.

01 The Indian electric vehicle market is not yet developed

The Model Y in the Tesla showroom in India was shipped across the ocean from the Gigafactory in Shanghai, China.

The rear - wheel - drive Model Y costs 5.989 million rupees, which is about 500,000 yuan. The long - range, rear - wheel - drive Model Y costs 6.789 million rupees, approximately 566,000 yuan.

This price includes duties and additional taxes levied by the state. Together with transportation costs, certification, and other factors, it becomes the highest price in the world's major markets.

How does this price compare to the market?

India's per - capita GDP last year was $2,696, while China's was about $13,400. The market share of electric vehicles also differs significantly. In 2024, the penetration rate of electric vehicles in China was 40.9%, while in India, electric vehicles accounted for only 4% of total vehicle sales. The share of luxury cars is only 1%.

In this market of 1.4 billion people, the electric vehicle market is still in its infancy, and the price of the Model Y is not very attractive.

The Indian automotive market is currently still dominated by gasoline motorcycles. Even when it comes to electric vehicles, they are mostly two - wheelers. In addition, the charging infrastructure is very weak. Last year, the charging equipment density in Delhi, India's capital, was only 0.5 chargers per square kilometer. In contrast, Shenzhen has more than 420,000 chargers. The driving experience is worlds apart.

Indians will vote with their feet, creating a cycle: Poor driving experience - Rejection of car purchases - Automobile manufacturers in a wait - and - see situation - High vehicle prices in the initial stage - Further decline in purchasing willingness.

Of course, the local government wants to promote industrial transformation. To support domestic enterprises, the double - tariff policy, which is like "closing the door to catch the dog", has damaged the trust of many enterprises.

To expand its business, Tesla has considered building a factory in India. The relationship between the two dates back to 2016. Due to high tariffs, Tesla's plan to build a factory in India has been repeatedly postponed. Currently, Tesla will continue to sell imported vehicles in India.

In fact, even if Tesla built a factory in India, the price of its vehicles in India would not be lower than in China. The problem is that the foundation of the electric vehicle industry in India is very weak.

Take key battery raw materials such as lithium, cobalt, and nickel as an example. India is highly dependent on imports, and its mining ability is also relatively weak. In June this year, an automobile factory in Gujarat, India, suddenly shut down simply because there were no more Chinese rare earths.

China controls more than 90% of the world's production of rare - earth magnets. If this supply chain is disrupted, there is a risk that India's domestic electric vehicle industry will come to a standstill. This is no exaggeration.

Of course, Tesla has also recognized these key problems. Isabelle Fan, Tesla's regional director, said at a press conference: "We are here to build an ecosystem and invest in the necessary infrastructure, including charging infrastructure."

"We're starting from scratch and building up. It will take time to cover the whole country."

02 Personnel changes + New products and markets

On July 15, the Wall Street Journal reported that Troy Jones, Tesla's sales director in North America, resigned.

Less than a month ago, Omid Afshar, the former assistant to Musk who was in charge of sales and manufacturing operations in North America and Europe, resigned.

In early June, Tesla participated in the "Electric Vehicles to Rural Areas" campaign for the first time. In April, Tesla introduced a more affordable version of the Cybertruck with simplified equipment.

Behind these news stories lies a common reason - Decline in sales.

In the second quarter of this year, Tesla delivered 384,122 vehicles, a 13% decline from the previous year. Correspondingly, the situation in all regions is not encouraging.

The European automotive industry has found that the number of new vehicle registrations of Tesla in Europe in May was 13,863, compared with 19,227 last year, a decline of 27.9%. Looking at the past five months, the number of Tesla registrations in the EU has dropped from about 91,996 last year to 50,413, a decline of 45.2%.

In April this year, Tesla sold 39,900 vehicles in the United States, a 20% decline from the previous month. In the first four months of 2025, Tesla sold a total of about 174,000 vehicles in the United States, a 9.4% decline from the previous year. Under the pressure of the European and American automotive businesses, Tesla's profit in the first quarter of this year dropped by 71% compared with the previous year.

In this situation, Tesla must look for new markets. Although the Indian market has a weak foundation, its future potential is promising.

By 2030, India wants electric vehicles to account for 30% of total passenger - car sales. The British market and corporate consulting firm GlobalData has predicted that the sales volume of pure electric vehicles (passenger cars) in India will exceed 1.04 million by 2030, about nine times that of 2024.

Currently, India is the world's third - largest automotive market. Many Chinese automakers such as MG and BYD have already started operating in the Indian market.

The reason for Tesla's entry into the Indian market could be the decline in sales and over - capacity. Generally speaking, this could even reshape the global electric vehicle market.

The future potential drives current efforts. How well Tesla will perform in this magical land of India remains to be seen.

This article is from the WeChat account “SuperEV - Lab”. Author: Zai Zhou. Published by 36Kr with permission.