Can Tesla win in India's EV market?

India is set to see its first Tesla showroom. Reports suggest that the EV giant has signed a five-year lease in Mumbai's prime location. Tesla will pay an initial annual rent of $446,000, with an increase to $542,000 by the fifth year.

Tesla moves amid 'Trump effect'

This update comes as US President Donald Trump called out India for its high auto tariffs. Tesla and its CEO, Elon Musk, have long been critical of the high levies that India has imposed. High duties have kept Tesla from entering the world's third-largest car market. However, Musk now has the backing of Trump, who reaffirmed his aggressive tariffs stance. Reports also suggest that low auto tariffs are crucial in the ongoing India-US trade negotiations. Commerce Secretary Piyush Goyal is currently in the US to diffuse trade tensions and possibly find a middle ground for India -  a deal that favours a strategic trade balance with the US but also protects its domestic industries.

Can Tesla compete in India?

Even if we imagine a world where Tesla rides on Indian roads, the journey is expected to be tricky. India's EV market is currently dominated by domestic automakers, with Tata Motors holding over 60 per cent market share. Pricing could be crucial since Tesla's base models cost nearly double the price of existing Indian EVs. Tesla can probably capitalise on the growing premiumisation of the Indian market, with luxury segments outpacing affordable shopping.

But pricing isn't the only challenge. EV infrastructure could be a bigger issue, with a glaring lack of charging stations. Tesla's low ground clearance may require re-engineering, significantly increasing costs. Electric vehicle growth is still nascent in the country, with EVs making up less than 3 per cent of the total passenger car sales in India, which, in hindsight, could mean unearthed potential.

Can India become a safe haven for Tesla?

Tesla's India bet also comes at a crucial time globally. The company faces rising opposition in Europe amid protests against Elon Musk. Multiple vandalism reports have emerged across the US and Europe. Meanwhile, cyber truck owners report harassment and intimidation on the roads as Tesla's once-loyal fan base crumbles. Now, a movement called 'Tesla Takedown' is gaining momentum, urging consumers to boycott Musk's businesses. As growth challenges mount in mature markets, a country like India - one of the world's fastest-growing auto markets - could be crucial for Tesla's expansion.