Electric company sold just 100 cars in five months. “Sales numbers are low by any standard.” What’s going on, Elon?
Tesla debuted in the Indian market, but performance was far, far below expectations.
The company opened its first store in Mumbai in July and has since sold just over 100 cars in the country. The performance is considered disappointing if we take into account that, in addition to representing a market with almost 1.5 billion inhabitants, India exempted imported electric vehicles from paying customs duties.
The measure was announced in March and was designed to give foreign car manufacturers a “push” in the local market. Thus, the expectation was that the arrival of Tesla, with the start of operations in Mumbai and with a main center in Gurugram, near New Delhi, would help in the transition to electric mobility.
Now, Elon Musk’s company is faced with local reality. In fact, the electric market in India has been growing and increased by 57% this year, but the brand’s target audience in the country is extremely restricted.
“Sales numbers are low by any standard”Autocar India editor Hormazd Sorabjee told . “But I think this is strategic. They have just entered the Indian market and have good potential to increase sales here in the future.”
High prices, infrastructure problems
The main obstacle that Tesla has faced is the price of the cars. The Model Y, the brand’s most affordable model, costs around 40 thousand dollars in the USA, but reaches Indian consumers for almost 67 thousand dollars (around 5,989,000 rupees). The cost is so high that it places Tesla in a very limited audience segment.
In addition to the prohibitive price, the brand’s charging infrastructure is still very incipient. At the moment, the company only has one Supercharger in operation in India, with two additional stations still in the implementation phase.
In practice, the limited charging network, combined with the public’s low familiarity with larger electric cars, makes it difficult to compete with local manufacturers like Tata and Mahindra.
