Tesla arrives in India with Mumbai store; Fadnavis hopes for local production

Mumbai: Global EV giant Tesla officially made its entry in India on Tuesday with the launch of its first experience centre at the Maker Maxity Commercial Complex, in Bandra Kurla Complex here.

The experience centre was inaugurated by Maharashtra Chief Minister Devendra Fadnavis in the presence of other dignitaries.

Speaking at the event, Fadnavis said the state government wants to see Tesla establish its research and development and manufacturing facilities in India, and invited the global EV major to consider the state as a partner in its journey.

"We wish to see research and development and manufacturing being done in India. I am sure Tesla will think about it at an appropriate stage," Fadnavis said.

"Consider Maharashtra as a partner in your journey," he said.

The CM called Tesla's decision to open its first centre in Mumbai a statement of confidence in the city and state.

"The inauguration of the Tesla Experience Centre is a statement that Tesla has arrived in the right city and in the right state -- that is Mumbai and Maharashtra," he said.

He said Mumbai is not just as the financial, commercial, and entertainment capital of India, but also an entrepreneurial hub.

"Mumbai stands for innovation and sustainability," Fadnavis said.

The CM said Tesla is more than an automotive company. "Tesla is not just a car company, it is all about design, innovation and sustainability, that is why it is loved globally," he said.

The chief minister said he rode a Tesla vehicle for the first time when he was in the US in 2015.

"I thought then that we should have such mobility in India. It has taken almost 10 years, but we are very happy that you are finally here," he said.

The CM expressed confidence that India will become a major market for Tesla.

"People in India are eagerly waiting for Tesla. I am sure you will find one of your best markets here once you start deliveries," he said.

Highlighting the state's readiness to support electric vehicle growth, Fadnavis said Maharashtra has a robust market for electric mobility.

"We are also a manufacturing hub. Our policies for charging infrastructure, vehicle promotion, and incentives for manufacturing are among the best.

This is a good beginning and has the potential to transform the market," he said.

As per industry experts, the Austin-headquartered company has already shipped in first set of cars, apparently Model Y rear-wheel drive SUVs, from its China plant.

Last month, Tesla India took on lease 24,565 sq ft warehousing space in Lodha Logistics Park in Mumbai for five years.

In June, Union Heavy Industries Minister H D Kumaraswamy said the electric carmaker is not interested in manufacturing cars in India but keen on establishing showrooms in the country.

Tesla has made its India debut at a time when it is facing reduced sales in Europe and China.

Last week, Tesla India Motors and Energy Pvt Ltd -- the Indian subsidiary of the company founded by Elon Musk -- had received trade certificate from the Regional Transport Office (RTO) in Andheri.

Such a certificate allows the company to showcase its vehicles, conduct test drives, and begin sales.

Trade certificates are a necessary requirement under the Central Motor Vehicles Rules for vehicle dealers or manufacturers looking to operate unregistered vehicles for trials or promotional activities.

US President Donald Trump has said if Tesla were to build a factory in India to circumvent that country's tariffs, it would be "unfair" to the US.

Tesla CEO billionaire Elon Musk had said in April last year that his visit to India had been delayed due to the company's heavy obligations.

The electric car maker was seeking an initial tariff concession that would allow it to offset 70 per cent of customs duty for cars priced less than USD 40,000, and 100 per cent for cars of higher value.

However, earlier this year, Commerce and Industry Minister Piyush Goyal stated that India will not tailor its policies to suit Tesla, and its laws and tariff rules will be formulated to attract all-electric vehicle manufacturers from across the globe to set up a base in the world's fastest-growing economy.