Tesla to Open First Showroom in Mumbai, Signs 5-Year Lease for India Expansion

The prime electric vehicle (EV) producer, Tesla, has finally entered the Indian market. it will open the first showroom in Mumbai. This establishment also comes with a reportedly five-year lease agreement for the showroom and is considered another big stepping stone to India's expansion plans.  

Tesla's Road into India 

For long, Tesla has seen India as a profitable market but not without the major bottlenecks of extremely high import duties, regulatory hurdles as well as infrastructure challenges which it faced in delaying entry. India has increased momentum in the last couple of years, almost amped up to becoming an EV to let in into the global-giants market from new initiatives such as subsidies, tax benefits, and other changes to policy. 

Elon Musk, Tesla's chief executive officer, has always been interested in venturing into India. After having successful conversations with government officials in India, his talking points have revolved around effective tax reductions for setting up a local manufacturing unit to help make Tesla vehicles affordable to Indian customers.  

Why India? The Rapid EV Market

India appears among the world's rapidly evolving automobile markets with a formidably strong drive toward sustainable and clean energy solutions. Measures have been taken by the government to encourage EV adaptation like:  
- Early Adoption and Manufacturing of Electric Vehicles (FAME)  
- Tailored Benefits for Local EV Manufacturing  
- Strategies to Reduce Each Individual's Dependence on Fossil Fuels  

Tesla will set the pace for the EV industry in India, further pushing local players to innovate and compete in the premium electric vehicle space.  

Mumbai: The Perfect Launchpad for Tesla  

Mumbai, financially the capital of India, is perfect for Tesla's first showroom. With a lot of luxury car owners, an infrastructure conducive to the EV lifestyle, and an opening mindset towards sustainable mobility solutions, the city is the right type of launching ground. The showroom will allow potential buyers to experience first-hand the advanced technology, design, and performance that Tesla vehicles embody.   

Tesla is expected to bring some of its bestsellers, including the **Model 3, Model Y, and Model S**, to India. In their quest to ensure that costs are cut down and Tesla cars are made affordable to the people, initial sales will be made, and in the future, they might even be locally assembled, if not manufactured here.  

Challenges to Come  

What enthuses everyone within and outside the company about Tesla's entry is the fact that the company faces the following major challenges in India:  
1. High Import Duty - Tesla is seeking low import duty on EVs, which currently run upwards of 60-100%, leading to increasing prices at most times.  
2. Charging Infrastructure - India is on a mission to develop EV-oriented infrastructure; nonetheless, to attend better convenience to user experience, Tesla must probably install the proprietary **Supercharger network**.  
3. Increased Competition from Local Manufacturers**: Indian companies like Tata Motors, Mahindra, and start-up Ola Electric arealready