Tesla opens biggest India hub as sales stall, bets on wide charging network

Tesla has opened its largest integrated sales and service centre in India, even as the American electric vehicle maker battles sluggish sales and slow adoption across Asia’s third-largest economy.

The new hub in Gurugram, near Delhi, combines a showroom, charging facilities and after-sales service bays in a single location — a move seen as part of the electric car maker's renewed push to gain ground in India.

Dealership data accessed by the BBC shows Tesla has sold just over 100 vehicles since its widely publicised debut in July. While the company received over 600 bookings by mid-September, only a fraction have translated into deliveries, even as rival premium EVs from BMW, Mercedes-Benz and BYD posted strong festive-season sales aided by tax cuts and higher local familiarity.

Tesla did not respond to the BBC’s queries on the low figures, but sources close to the company said the priority now is to “strengthen India’s EV ecosystem” to revive demand. The effort is built on a three-pronged plan to expand charging points, improve customer experience and push EV adoption with cost-of-ownership messaging.

At the hub launch, India head Sharad Agarwal argued that Tesla’s cost benefits are not immediately visible in the sticker price but emerge over time. Buyers, he claimed, could save up to Rs 20 lakh over four years through low maintenance and cheap home charging.

“Most of the service is done remotely through software updates… Cost of home charging is one tenth of petrol prices,” Agarwal said.

Auto analysts say Tesla’s entry has been cautious by design. “Their numbers are low by any standard,” Autocar India editor Hormazd Sorabjee told the BBC. “But that’s strategic. They’ve only put a foot in the door. There’s potential over the long term.”

India remains a difficult EV market — electric cars account for under three per cent of passenger vehicle sales, and public charging is scarce, with only around 25,000 stations nationwide. Tesla says its vehicles can be charged at home, adding roughly 70 km of range per hour, while its expanding supercharger network can deliver about 270 km in 15 minutes.

The weak India debut also comes amid a global slowdown for Tesla. Despite record quarterly revenue of $28 billion in the July–September period, profits fell 37 per cent due to high R&D and tariff-related costs. Sales in Europe, China and the US have also softened.

Founder Elon Musk has shown little inclination toward local manufacturing in India, favouring an import-heavy strategy despite incentives announced last year to attract global EV makers. Whether the new integrated hub and expanded charging network can counter early setbacks — and convince Indian buyers — remains Tesla’s next major test.