Tesla's Mumbai showroom opening almost here: Why did its India debut take years?
The EV maker is scheduled to inaugurate its showroom in Mumbai on Tuesday, July 15. The store is located at Bandra Kurla Complex, the city's leading commercial business district, according to an invite sent to media houses. Tesla also operates a service and warehouse centre that is located around six kilometres away from the showroom.
Over the past few months, the company has been importing vehicles, chargers, and other accessories worth over $1 million into India from China and the US, according to a report by Reuters. Based on documents, the report said that the import shipments included six of Tesla's best-selling Model Y. Hence, these cars can be expected to be on display at the showroom.
Over three dozen people have reportedly been hired to work at the Tesla experience centre in Mumbai, including board store managers as well as sales and service executives. It has also advertised for vacancies for supply chain engineers and vehicle operators responsible for collecting data for its autopilot feature.
Tuesday's inauguration officially marks Tesla's entry into the world's third-largest car market. It comes at a time when the EV maker is grappling with declining sales in key markets like China. It is also facing issues with excess manufacturing capacity.
Since Tesla will be selling imported cars in India, it will reportedly need to pay about 70% import duty and other levies. CEO Elon Musk has previously complained about India's high import tariffs.
Additionally, the showroom has received clearance from the authorities. 'A trade certificate has been granted to Tesla India following due inspection of the facilities mentioned in their application,' a senior Regional Transport Office (RTO) official was quoted as saying by PTI. 'This includes the showroom, vehicle parking area and warehousing facility,' they added.
Meanwhile, a newly created Tesla India handle on X posted: 'Coming soon'.
Coming soon pic.twitter.com/kquMXghCnK
— Tesla India (@Tesla_India) July 11, 2025
https://platform.twitter.com/widgets.js
In 2016, Musk had announced that pre-bookings for its Model 3 would be available for customers from many countries outside North America, including India. Soon, many customers in India put up a refundable deposit of $1000 (approx. Rs 85,000 at current exchange rate). Earlier this year, the company initiated refunds to those who had paid the reservation fee as the Model 3 has now been discontinued.
'We would like to return your reservation fee for the time being. When we finalize our offerings in India, we will reach out in the market again. We hope to see you back with us once we are ready to launch and deliver in your country,' Tesla said in emails to the early bookers, according to a report by Bloomberg.
Tesla has long expressed interest in India. However, its plans to start commercial operations in the country were delayed due to government policies and import duty concerns.
Once the world's top EV seller, Tesla is facing increased competition from Chinese EV makers, particularly BYD, as global EV sales growth has tapered.
BYD is said to have an edge in terms of auto technology as well as pricing. It reported sales of over 318,000 passenger vehicles in February, up over 150 per cent from a year earlier, and the Chinese company's Hong Kong-listed shares are already up nearly 50 per cent this year.
Meanwhile, Tesla shares have been tanking, falling close to 15 per cent and erasing around $150 billion in market value. The feud between Musk and US President Donald Trump has reportedly had a significant bearing on the company's stock market performance. Without the most influential American's political backing behind its founder gone, Tesla could also run into headwinds in the US.
The central government has been wooing Tesla to manufacture locally for several years now. In a bid to attract the carmaker, the PM Modi-led government introduced a new policy that offered companies a reduced duty of 15 per cent if they set up manufacturing locally and committed to investing $500 million in India.
In June this year, Union Heavy Industries Minister H D Kumaraswamy said that global EV makers like Mercedes-Benz, Volkswagen-Škoda, Hyundai and Kia have shown interest in applying under the ministry's flagship Scheme to Promote Manufacturing of Electric Passenger Cars in India. However, Tesla is not keen on manufacturing in India, the minister said.
This comes amid some political pressure, with President Trump stating that it would be unfair to the US if Tesla were to circumvent tariffs imposed by India by building a factory in this country.
Kumaraswamy had said that Tesla is planning to open two retail stores in India, including the Mumbai one. It is unclear where the company is looking to launch the second showroom in the country. According to LinkedIn posts, Tesla has invited job applications for store managers in Delhi.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
13 minutes ago
- Economic Times
RailTel shares in focus after securing Rs 264 crore deal for Kavach safety system
Shares of state-owned RailTel Corporation of India will be in focus on Tuesday after the company announced it has received a work order worth Rs 264 crore (inclusive of taxes) from East Central Railway for the implementation of the Kavach system—India's indigenous Train Collision Avoidance System (TCAS). ADVERTISEMENT The project involves deploying Kavach over 607 route kilometres of low-density railway track under the jurisdiction of East Central Railway. The contract is scheduled for completion by July 14, 2027. Last week, RailTel also secured a separate order worth Rs 17.47 crore from the General Administration Department (GAD) of Chhattisgarh. The scope of this contract includes the implementation of an integrated communication infrastructure comprising WLAN, LAN, EPABX systems, network connectivity, hardware procurement, commissioning, and long-term operations and maintenance. This project is expected to be completed by January 14, 2031. The latest contract adds to a string of significant orders RailTel has received in July, bringing its total order value for the month to over Rs 130 crore. Also Read: SBI, HDFC Bank among 10 banking stocks in Antique's top picks that may rally up to 50% ADVERTISEMENT According to Trendlyne data, the average target price for RailTel shares is Rs 270, implying a potential downside of 34% from current levels. The lone analyst tracking the stock has given a 'Strong Sell' recommendation. RailTel shares have gained 9% over the past six months and have surged 195% over the last two years. The company currently commands a market capitalization of Rs 13,148 crore. ADVERTISEMENT RailTel, a Navratna public sector undertaking under the Ministry of Railways, is one of the largest neutral telecom infrastructure providers in India. Also Read: Brokerages initiate coverage on Delhivery, 7 other stocks; up to 33% upside seen (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
13 minutes ago
- Economic Times
IT crowned 2025's worst sector: Are TCS, HCL Tech no longer buy-and-hold stocks?
Long revered as the ultimate buy-and-hold stocks for long-term investors, largecap IT stocks are now losing their charm with the Nifty IT index becoming the worst performing sector by plummeting 14% this year amid slowing growth and AI-led tech disruption. The dramatic reversal has left sector bellwether TCS shares down 21% in 2025 and trading 30% below its 52-week high, with peers like Infosys, HCL Tech, and Wipro all posting double-digit losses. ADVERTISEMENT The sector's structural transformation has prompted a fundamental reassessment of investment strategy. HSBC delivered a stark warning that fundamentally changes the IT investment playbook: "IT stocks (especially top-tier IT companies) are no longer five-year buy-and-hold compounding stocks; they now require a lot more active management around their cycles/volatility," HSBC analysts wrote. "The long-term stock return trajectory gradient will not only be lower than in the past, but stocks will also be a lot more cyclical around this mean path." This represents a seismic shift for a sector that once delivered consistent compounding returns, now relegated to cyclical trading territory requiring active management. Also Read | HCL Tech Q1 Results: Cons PAT slips 10% YoY to Rs 3,843 crore The institutional abandonment tells the story of lost confidence. FII holding of IT Services has plunged to a 13-year low, while DII ownership has also fallen sharply recently. This massive institutional exodus has accelerated the sector's decline as smart money flees what were once considered India's safest large-cap bets. ADVERTISEMENT TCS's soft Q1 numbers crystallized investor fears, with revenue missing consensus estimates as it fell 3.3% quarter-on-quarter in constant currency terms. The disappointing performance from the sector leader confirmed that all Tier-1 players are expected to report muted constant currency quarter-on-quarter revenue growth in Headwinds Mount ADVERTISEMENT The sector faces a perfect storm of challenges that extend far beyond typical cyclical pressures. IT stocks are being battered by weak discretionary spending by clients, macro and geopolitical uncertainty, and AI-led tech disruption that threatens traditional business Global explained the revenue growth trajectory challenges: "The revenue growth trajectory for IT companies in the last few quarters was impacted by: i) slower client decision-making amid macro uncertainties, b) re-prioritization of spending, with increased focus on cost efficiencies and optimization, which usually have a slower revenue conversion cycle, and c) focus on projects with immediate RoI." ADVERTISEMENT "FY26 is expected to commence on a subdued note for IT players, as clients remain cautious on tech spending, particularly discretionary spending. Elevated macro and geopolitical uncertainty dampen the outlook for IT spending and could delay a broad-based recovery in client spending," Emkay analysts added. Also Read | Wipro, Infosys and other IT stocks fall as weak TCS results, macro uncertainty weigh on sentiment ADVERTISEMENT HSBC's medium-term outlook paints a sobering picture: "Growth for the sector has been low single digits in the past two years (FY24/25), owing to a high base, GCC expansion, GenAI ambiguity and above all weak/uncertain macro. FY26 is likely weak as well due to tariff impact. We maintain our long-standing expectation of 4-5% CAGR sector growth over the medium-to-long term. With a low base of three years (FY24-26), we expect a revival in FY27."This represents a dramatic comedown for a sector that once delivered high-teens growth rates veterans are increasingly bearish on largecap IT prospects. Samir Arora delivered a blunt assessment recently saying that IT services is not a great Street veteran Nischal Maheshwari sees limited hope in the near term: "Within the IT space, you have to look for the midcaps. There you might still look at a 10-12% kind of growth.'"We have still not seen demand coming back strongly in the US and till tariff issues get out of the way, I do not think so there is going to be a fresh commitment of any capex across the world. So, we have to wait for a couple of more quarters or at least for one more quarter before we are going to start seeing some demand coming back. So, the second quarter also is going to be a wash out only for IT," Maheshwari technical picture looks equally grim. Samco Securities identified a classic Head and Shoulders pattern: "The Nifty IT index is forming a classic Head and Shoulders pattern, a time-tested sign that often hints at trend exhaustion. After a strong rally, the left shoulder and head have already formed, and now the right shoulder is taking shape. The neckline sits around the 31,500 mark, acting as a crucial support. If the index breaks below this level, it could trigger a deeper correction.""What makes this more serious is the timing, global headwinds like rising US tech tariffs are adding pressure. This isn't just a chart pattern; it reflects both technical and fundamental stress. Watch closely, this pattern could be the market's way of ringing the bell before the party ends," Samco analysts James, Chief Market Strategist at Geojit Investments Limited, reinforced the bearish outlook: "Nifty IT index charts suggest strong selling pressure and a lack of buying interest. The weekly MACD histogram has formed a reversal candle, reinforcing the bearish sentiment. From a derivatives perspective, most constituent stocks have witnessed short additions on both daily and weekly timeframes, indicating sustained bearish positioning. This could potentially drag the index down towards the 37,050 level in the near term.""Any such recovery is likely to be met with renewed selling pressure. A sell on rise strategy may be employed," James verdict is increasingly clear: India's IT sector has entered a new era where the old rules of buy-and-hold investing no longer apply, forcing investors to fundamentally rethink their approach to what were once considered the market's most reliable compounders. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Mint
13 minutes ago
- Mint
Dollar holds near 3-week high before CPI; bitcoin eases from record peak
TOKYO (Reuters) -The dollar hovered near a three-week high versus major peers on Tuesday as traders awaited the release of U.S. inflation data later in the day that could provide clues on the path for monetary policy. The U.S. currency was also buoyed by elevated Treasury yields, with investors weighing a potential exit of Jerome Powell from the Federal Reserve as President Donald Trump continued his criticism of the central bank chairman. Currencies showed little reaction to data showing China's economy grew 5.2% last quarter, slightly topping analysts' forecasts. Bitcoin drifted further from Monday's all-time peak of $123,153.22 following a seven-day, 14% surge as investors bet on long-sought legislative policy wins for the cryptocurrency industry this week. It was changing hands at around $117,550 as of 0520 GMT. The dollar was little changed at 147.62 yen, after earlier rising to the highest since June 23 at 147.89 yen. The dollar index, which tracks the currency against the yen, euro and four other major rivals, eased slightly to 98.003, not far below the overnight peak of 98.136, the highest since June 25. The euro edged up to $1.1681, after dipping to $1.1650 on Monday for the first time since June 25. Fed Chair Powell has said he expects inflation to increase this summer as a result of tariffs, which is seen keeping the U.S. central bank on hold until later in the year. Economists polled by Reuters expect headline inflation to increase to 2.7% on an annual basis, up from 2.4% the prior month. Core inflation is expected to rise to 3.0%, from 2.8%. "Should inflation fail to materialise or remain steady, questions may arise regarding the Fed's recent decision not to cut rates, potentially intensifying calls for monetary easing," James Kniveton, senior corporate FX dealer at Convera, wrote in a client note. "Calls from the White House for leadership changes at the Fed may increase." Trump on Monday renewed his attacks on Powell, saying interest rates should be at 1% or lower, rather than the 4.25% to 4.50% range the Fed has kept the key rate at so far this year. Fed funds futures traders have been pricing in about 50 basis points of interest rate cuts by year-end, with the first quarter-point reduction seen as likely in September. "If Powell leaves, we expect the (U.S. Treasury yield) curve to steepen sharply, with the short-end factoring in front-loaded rates cuts," DBS analysts wrote in a note. "Meanwhile, the loss of confidence in price stability should translate into sharply higher 10-year and 30-year yields." China's economic growth topped market forecasts in the second quarter - even as it slowed slightly from the prior three months - in a sign of resilience against U.S. tariffs. At the same time, analysts warned of underlying weakness and rising risks later in the year that will ramp up pressure on Beijing to roll out more stimulus. The Chinese yuan weakened slightly to 7.1766 per dollar in offshore trading. The Aussie was steady at $0.6548. (Reporting by Kevin Buckland; Editing by Sonali Paul and Lincoln Feast.)
