Mumbai: Electric vehicle maker Tesla officially entered the Indian retail market with the launch of its first experience centre in Mumbai’s Bandra Kurla Complex (BKC).
Maharashtra Chief Minister Devendra
Fadnavis inaugurated the showroom and welcomed Tesla’s arrival in the state.
Fadnavis said Tesla’s decision to launch in Mumbai shows the company chose the “right city and right state”. He added that Maharashtra has become a leader in electric mobility and said Tesla is also setting up logistics, servicing facilities and four charging stations in the state.
The company has launched its Model Y vehicle in India.
Opposition Questions Celebration Around Tesla Entry
However, the launch quickly turned political after Shiv Sena (UBT) leaders criticised the government for celebrating the opening of a showroom instead of securing Tesla manufacturing in India.
Shiv Sena (UBT) MP Priyanka Chaturvedi questioned why the Chief Minister attended the inauguration of what she described as a “car showroom/dealer store”.
In a post on X, she said India was originally trying to bring Tesla manufacturing to the country, but instead ended up with imported cars made in China.
She also said customers would have to pay more because of high import duties and taxes on imported vehicles.
Tesla Manufacturing Plans Face Challenges
Tesla had earlier discussed manufacturing plans in India under a proposed policy that offered tariff relief linked to investments of around $500 million in local manufacturing.
However, reports suggested negotiations slowed after policy conditions changed and Tesla reconsidered its expansion plans due to lower global factory utilisation levels.
The company currently operates factories at around 60% capacity globally.
Aaditya Thackeray Targets Centre
Shiv Sena (UBT) leader Aaditya Thackeray said the Tesla showroom could have opened much earlier if the Centre had not delayed discussions over customs duties.
He also claimed Maharashtra’s electric vehicle policy introduced during the Maha Vikas Aghadi (MVA) government helped attract EV companies to the state.
Tesla refused to manufacture in India and continued to sell its imported Chinese manufactured vehicle which attracts heaviest import duty, making it an expensive option for Indians. It doesn’t have anything to do with stalled negotiations. They came with their eyes wide open on what they were getting into however it was infuriating to watch GoI go all out and lay down the red carpet for a Chinese import vehicle over Make in India EV models.
