Tesla marks formal India entry with Mumbai launch event

Tesla will open its first India showroom in Mumbai next week, having imported $1m (R17.82m) worth of cars and merchandise, marking its entry into the world's third-largest car market despite CEO Elon Musk's complaints about high import tariffs.

In an invitation to media late on Thursday, the carmaker said the July 15 event was the “launch of Tesla in India through the opening of the Tesla experience centre at Bandra Kurla Complex” in the city's leading commercial business district.

Grappling with excess manufacturing capacity at its other factories and falling sales, Tesla has pivoted to selling imported cars in India on which it will need to pay about 70% import duty and other levies.

Commercially available customs records from January to June showed Tesla imported vehicles, chargers and accessories into India worth close to $1m, mainly from China and the US.

The vehicles included six of Tesla's best-selling Model Y at a shipment value of $32,500 (R579,426) each for five cars and $46,000 (R820,110) for the long-range version, as well as several Superchargers.

Indian Prime Minister Narendra Modi's government has for years wooed Tesla, including forming a new policy to attract the carmaker to build its EVs locally.

Last year, Musk had planned to visit India where he was expected to announce an investment of $2bn to $3bn (R35.66bn to R53.48bn), including in local EV manufacturing, but he cancelled the trip at the last moment.

Tesla has conveyed it is not interested in manufacturing in India now.

US President Donald Trump has said if Tesla were to build a factory in India to circumvent that country's tariffs, it would be “unfair” to the US.

Tesla has hired for several of the three dozen positions it advertised in India earlier this year, bringing on board shop managers, sales and service executives. It is looking for supply chain engineers and vehicle operators for its autopilot ambitions.