Tesla to shift gears to direct sales model in a bid to ramp up India business

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EV maker bets on ecosystem-first strategy, expanding service, charging and online-only sales to build a long-term premium play

Tesla Model X
Tesla Model X | Credits: Shutterstock

Tesla is laying the groundwork for a long-term play in India, with a calibrated expansion across service, charging infrastructure and a direct-to-consumer sales model.

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Sharad Agarwal, Country Head, Tesla India, said the company is focusing on building the ecosystem first instead of chasing aggressive retail expansion. “We are building block by block a very strong foundation for the business and the brand in India,” Agarwal said at the six-seater Model Y L launch in Mumbai today. The car, launched specifically to cater to the Indian audience, is priced at ₹61.99 lakh and is set to start deliveries in the current quarter of 2026. 

Tesla is also doubling down on its global direct-to-consumer model in India, bypassing dealerships entirely.

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Customers can order vehicles online and have them delivered directly to their homes. Deliveries, which began in September 2025, have already reached 21 states. “Tesla operates on a fundamentally different retail model. We do not follow the traditional dealership-based approach. We are a direct consumer brand. You can sit anywhere in the country, order your car, and we deliver it to your doorstep,” said Agarwal.

Expanding service footprint beyond early metros

Since entering India in July last year, Tesla has opened three experience centres in Delhi, Mumbai, and Gurgaon, along with service centres and delivery hubs in the NCR region. A body shop and service facility in Pune has also been added.

The next phase will see Tesla expand service and body shop presence to Bengaluru, Hyderabad, Chennai, and Ahmedabad within the current quarter.


Charging network to follow customer behaviour 

Charging infrastructure remains central to Tesla’s India strategy, though the company is taking a measured approach. It has set up five Supercharger stations so far, with locations chosen based on customer behaviour rather than just intercity routes. “We want to build charging around the lifestyle of our customers—where they live, travel, dine and work,” Agarwal said.

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In the coming months, Tesla plans to connect key cities including Delhi, Chandigarh, Jaipur, Ahmedabad, Pune, Bengaluru, Hyderabad and Chennai, particularly along major highways.

Tesla also says it can now install home charging infrastructure across 28 states. “We want customers to wake up every morning with a fully charged car. That’s how you eliminate range anxiety,” Agarwal said.

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Tesla's performance in India

Today's launch adds a third variant of the Model Y. Since its entry in the country in July 2025, Tesla has only 342 vehicles registered as per Vahan data. The addition will compete with Mercedes Benz EQS and EQB SUV models, Audi Q6 e-tron, and BMW iX1/iX3. 

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The new offering, which has not been launched in the US markets but in China should grab the Indian audience's interest. Agarwal said that as the Model Y L features a three-row configuration with captain seats in the middle, making it a six-seater, will be well-suited for Indian families. "With this, we aim to disrupt the premium luxury EV segment by combining convenience and safety."

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