Electric car-maker Tesla is gearing up to strengthen its foothold in India with a major new centre in Gurugram, marking a pivotal milestone in its effort to scale volumes and retail visibility in a market currently dominated by European luxury EV brands.

The opening comes at a challenging time globally for the American manufacturer, which faces slowing demand in China and growing investor caution back home. These headwinds have pushed India higher in its strategic roadmap. The Gurugram facility follows earlier experience centres in Mumbai and Delhi.

Premium Pricing, Strong Pull

India became Tesla’s 50th global market with the launch of two fully imported variants of the Model Y, priced from Rs 59.89 lakh upwards. With a 70 per cent import duty, the Model Y is among the company’s costliest offerings worldwide, roughly 30 per cent above US price levels.

Despite this premium tag, the response has exceeded expectations. According to data from the Federation of Automobile Dealers Association, the company registered 104 retail units through September and October, as reflected on the Vahan portal.

Leadership to Drive Growth

Tesla is now relying on its India head, Sharad Agarwal, to sustain momentum. Agarwal, who took charge last November, brings close to a decade of experience in the luxury auto sector, having helmed Lamborghini India and led sales at Audi India. His appointment underscores Tesla’s ambition to challenge entrenched German players Mercedes-Benz and BMW, who currently hold nearly 80 per cent of the luxury EV market.

High-Stakes Global Context

The timing of Tesla’s India push is notable. Global sales rose just 7 per cent year-on-year to 4,97,100 units in the September quarter, while its China deliveries slid to a three-year low of 26,006 units in October amid intense competition and cooling demand.

Meanwhile, rivals in India such as the BMW iX1, Mercedes-Benz EQA, Volvo EC40, Kia EV6, and BYD Sealion 7 are quickly crowding the premium EV segment, which saw 460–480 units sold in October alone.