Bloomberg, citing unnamed sources, reported that Tesla had named Sharad Agarwal, former head of Lamborghini India, as its country head, signaling a shift toward a more localized strategy after a slow start in the world's most populous nation. Agarwal, who begins his tenure this week, will oversee day-to-day operations on the ground, replacing Tesla's prior approach of managing India through a small local team reporting remotely from China and regional hubs.
Agarwal spent nearly a decade expanding Lamborghini's footprint in India, growing its presence from major metros into over 60 cities and boosting smaller-market contributions to roughly one-quarter of total volumes. Tesla hopes to leverage its expertise in cultivating luxury demand to build momentum for the Model Y in India's high-end segment, rather than targeting mass-market volumes initially. The automaker aims to turn early curiosity into meaningful sales while navigating steep import tariffs and the country's relatively slow EV adoption.
According to Electrive and Startupro, Tesla's sales in India have so far fallen well short of expectations. As of October 2025, the company had received just over 800 orders for the Model Y, available in Standard Range RWD and Long Range RWD variants priced at INR5.989 million (approx. US$67,587) and INR6.789 million, respectively. Imported as a fully built unit from China, the Model Y carries high duties, making its Indian price nearly double the US cost. Analysts note that import duty (~70%), GST plus cess (~28%), and additional road tax and insurance inflate the final price, with Indian authorities collecting more than half of the vehicle's retail price in taxes.
Tesla's physical presence in India is limited to two stores in Mumbai and Delhi, with online sales fulfilled through home delivery. Registrations remain slow: by September, Tesla delivered just over 60 vehicles, including 41 in Mumbai, and October saw only 11 units registered. Despite these challenges, the company continues local efforts to expand its footprint, with Agarwal's appointment viewed as a critical step toward strengthening on-the-ground operations and exploring potential local manufacturing in the future to mitigate tariffs.
While India's broader EV market is growing rapidly—with over 200,000 two- and three-wheelers sold in October 2025—Tesla's luxury EV segment remains niche. Structural challenges such as limited charging infrastructure, road conditions, and regulatory hurdles, combined with high prices (due to import duties), have kept Tesla's vehicles out of reach for most Indian consumers.
Article edited by Jack Wu
