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On this edition of Newstrack, the focus is on Tesla's official entry into the Indian market with the opening of its first showroom in Mumbai's Bandra-Kulla complex.
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00:00It's Tesla time in India.
00:07First ever Tesla showroom in Mumbai.
00:1460 lakh rupees price tag on sleek Y model.
00:21Elon Musk Tesla gets India boost.
00:28India, Tesla's toughest terrain.
00:38Namaste Tesla. Top focus on NewsTrack.
00:45Good evening, you're watching NewsTrack here on India Today.
00:48I'm Akshita Anandha Gopal and yes we're going to be over the next 30 minutes
00:51talking about Tesla entering India.
00:54It's been a long journey for Elon Musk to actually make this moment happen.
00:57Now the Tesla's here.
00:59If you're planning to buy a Tesla car, is it actually worth it?
01:02We'll break down the pricing for you and why it's most expensive right now in India
01:07when you compare to other parts of the world.
01:10Those details coming your way.
01:11I'm Akshita Anandha Gopal, here are the headlines.
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02:31The first ever Tesla showroom has officially opened in India in Mumbai with a launch of the Model Y.
02:45A significant milestone in India's rapidly growing electric vehicle landscape.
02:50We already have so many options.
02:53And now Tesla finally has made it to India after endless delays, after endless negotiations.
02:59These were pictures from earlier today of Maharashtra Chief Minister Devendra Fadnava
03:03is also attending the opening of the showroom.
03:06Sales will kick off with the Model Y, which is a sedan.
03:09That's going to be available for customers in India.
03:12But how much will you have to pay up?
03:14And also, where else are you going to see showrooms coming up?
03:17Is it only going to be in Mumbai?
03:19Let's get you all of those details first in this report.
03:22After years of anticipation, Elon Musk's Tesla is finally charging into India.
03:33The electric vehicle giant inaugurated its first showroom in Mumbai on Tuesday.
03:38Located in the upscale Bandra Khulla complex, the showroom called Tesla Experience Center unveiled to VIPs and business partners.
03:46Maharashtra Chief Minister Devendra Fadnava inaugurated the showroom in Mumbai, inviting Tesla to manufacture in India.
03:55I think this is not just the inauguration of an experience center.
04:02But it is a statement.
04:04A statement that Tesla has arrived.
04:08A statement that Tesla has arrived in the right city, in the right state.
04:14That is the state of Maharashtra and the city of Mumbai, which is the entrepreneur capital of India, not just financial, commercial and entertainment capital, but also the entrepreneur capital of India.
04:32The much anticipated Model Y will be Tesla's first offering in India.
04:37For now, the cars will be sold as fully built imports.
04:41Six units of the electric SUV have already landed.
04:45Tesla had expressed interest in India as early as 2016.
04:51But its India plans were hampered due to import duty concerns.
04:56The debut comes exactly five months after Prime Minister Modi met Elon Musk and Donald Trump in the US, following which India reduced the basic custom duties on high-end cars priced above $40,000 from 110% to 70%, making the country a more attractive market for luxury EV makers.
05:23The inauguration officially marks Tesla's entry into the world's third largest car market.
05:31It comes at a time when the EV maker is grappling with declining sales in key markets like China.
05:38It is also facing issues with excess manufacturing capacity.
05:42India's EV market is still young.
05:46But with government incentives and urban interest rising, Tesla is betting big.
05:52With Dipayan Dutta in Mumbai, Bureau Report, India Today.
06:02So I'm sure there's a lot of excitement over Tesla entering India.
06:05And if you're a potential buyer looking to buy a Tesla car, what's available to you?
06:09Well, right away, it's the Y model of Tesla.
06:12And that was on display also at the Tesla showrooms.
06:14India Today's Dipayan Dutta brings you this report from the newly launched Tesla showroom in Mumbai to show off some of the features of this car.
06:22Hello, and you're joining us to welcome Tesla in India at BKC in Bombay.
06:28And behind me is their first offering, the Model Y.
06:32Now, there's a whole lot to unpack.
06:34So let's take a closer look at the Model Y and tell you what it's all about.
06:38Now, starting at the front, of course, there is a front underneath this.
06:42The Model Y has 2,321 liters of storage in total.
06:47For starters, of course, there is an LED DRL that runs along the side.
06:52This particular update also gets a new camera on the bumper.
06:56Now, step to the side and you get a sense of that cyber design language that the Model Y is famed for.
07:02It's something that we've seen on the Model S and the Cybertruck.
07:05But it gives it a very smooth flowing silhouette.
07:08Of course, you have 19-inch wheels on the side, shot in Hankook tires.
07:13These alloys are aerograde, which means you get an aerograde cap on them.
07:17Of course, being a Tesla, there's a whole lot of autonomy happening.
07:20And autonomy happens with cameras, as well as in the front ORVM.
07:25Now, the doors are flush, fit, and you get frameless windows, which is a pretty cool feature.
07:31Now, at the back, you get a flat floor, which is something that you realize,
07:37once you get into it, there is just so much legroom.
07:40There's a 7-inch screen at the back as well, as well as individual AC vents.
07:46These seats are electrically reclining, so you can recline them from where you are.
07:50In fact, you can even recline them from the boot, which we will show you right now is quite expansive.
07:57Now, of course, on this updated model of the Model Y, you get this really cool light bar that runs across,
08:04and a really expansive boot.
08:06Again, 2,130 liters of storage in total on the Model Y, which is really, really cool,
08:14considering the size of this car, and its relatively small footprint.
08:18We are inside the Model Y, and I can tell you a few things about the design.
08:23And, of course, as you can see, it's all very minimal.
08:27You have very few buttons on the dash.
08:29You have this 15-inch screen, which functions as the control center, and your infotainment.
08:35There are even very few buttons on the steering wheel as well.
08:39There's just a toggle here, a toggle for your voice function, and controls for the lights.
08:44But that's about it. These two are wireless chargers.
08:47You get a large storage here, cup holders, and both these seats are ventilated as well.
08:53What really, really stands out, though, is how minimal this cabin is.
08:58There is a small camera on the inside that controls the driver attention system,
09:02which ensures that you have full attention while you're driving.
09:06Of course, now let me tell you a little bit about the two models on sale.
09:10Now, Tesla has launched two models, the base one starting at 60 lakh rupees, going up to 68 lakhs.
09:16Now, the difference between them, one is an all-wheel drive long range, one is a rear-wheel drive long range.
09:22One has a range of 500 kilometers, the other one has a range of 622 kilometers.
09:28Both of them have a top speed of 201 kilometers an hour, while the long-range version will accelerate from 0 to 100 in 5.6 seconds.
09:39The regular base model of the Tesla Model Y will go from 0 to 100 in 5.6 seconds.
09:46So, you saw there a detailed review of the Model Y of the Tesla cars that's been put up for display there at the Tesla showroom.
09:54But let me break down for you. If you're looking to buy it, how much money will you have to shell out?
09:58Well, for those of you who don't know about Tesla cars, there are essentially four models.
10:02Model 3 is the lowest variant, then you have Model Y, which we showed you as well, Model S, and then Model X.
10:09Now, I want you to do a comparison here. What is the price like in India?
10:13It's extremely high. For Model 3, which is the lowest variant really in the Tesla cars, it's somewhere between 70 to 80 lakh rupees that you'll have to shell out.
10:22Model Y, which is what we showed you, 85 lakhs, right up to 1 crore rupees for a sedan, slightly bigger than Model 3.
10:29Model S goes right up to 2 crore rupees and Model X from 2 crore, somewhere to 2.5 crore rupees.
10:37This is the pricing given. As of now, only Y model is available.
10:40Let me compare that to what these cars are priced like, what that looks like in America.
10:46It's slashed nearly by half. The Model 3, which I told you is somewhere between 70 to 80 lakh in India, is 32 lakhs in America.
10:54If you convert the $39,000, then Model Y is about 36 lakhs.
11:00Compare here to the prices I told you in India, and you will see it's just about half of that.
11:05And that's, of course, because of a whole lot of import duties and whatnot.
11:10So, the similar breakdown of Model X shows you it's 62 lakhs, $80,000 for Model X, which is 66 lakhs.
11:17And remember that the same Model X in India is going to cost you somewhere about 2.5 crore rupees.
11:24The same thing is 66 lakhs if you go to America, $80,000. Big difference there.
11:30Similarly, if you look at EU as well, EU has similar rates to what America is showing.
11:36So, if it was 32 lakhs in America for a Model 3, it's 38 lakhs in the EU.
11:43So, in the European Union, also similar prices to what it is in America.
11:47It's only in India that there's such a steep rise.
11:50And if you're wondering why that is, let's explain that as well.
11:53Why are Tesla so expensive in India?
11:56As we did a comparison, we showed you the big difference.
11:59Import duties up to 100% for foreign electric vehicles, over $40,000.
12:05And that's something that Tesla falls in.
12:07It was over this, essentially, that you saw the biggest showdown between Elon Musk and the central government.
12:13And that's what led to the delay in Tesla actually coming into Indian markets.
12:17And that's not the only factor.
12:18There's also a GST, a goods and services tax on electric vehicles.
12:235% GST overshadowed by high customs duties.
12:28Logistics costs.
12:30The fact that all of these cars, the shipping, the homologation adds to the price as well.
12:36Because, obviously, Tesla will not want to absorb that price and moves to the consumer.
12:40No local production.
12:42Obviously, the answer to all of this is to ensure that Tesla makes in India.
12:46Because then your costs will come down.
12:48So, localization is key to competitive pricing.
12:51Right now, if you look at it, the rates that we told you about,
12:54you can get, of course, countless EV options in India for the same price,
12:59with a lot more features, perhaps a lot bigger as well.
13:02So, for Tesla to actually make a mark is going to be challenging
13:06because of the kind of pricing that they're putting out.
13:08But like I said, they don't really have an option right now because of import duties.
13:12The only way they can actually compete and actively at that in the Indian market is to ensure they make in India.
13:20They're moving towards that.
13:21That's what will help in bringing the prices down.
13:24And once that happens, then they could be a competitive force.
13:27For now, of course, I'm sure it's because it's almost a style statement, a trend.
13:32And there's so much curiosity over it that you could still see Tesla doing well.
13:36But mind you, as much as there's been a lot of talk about how this is a game changer for India's EV market,
13:42let's face it, Tesla is in trouble.
13:45Sales have been slumping.
13:46Profits are plunging.
13:47Elon Musk's global clout fading.
13:50As rivals close in and markets are tightening, all eyes are now on India.
13:55Tesla is counting on going ahead and getting a second wind, courtesy Indian business.
14:12Times are tough for Elon Musk.
14:14He's no longer the influencer in chief for the world's most powerful man.
14:19I'm very disappointed.
14:20I'm very disappointed in Elon.
14:22I've helped Elon a lot.
14:25And Tesla is losing momentum in the fiercely competitive electric vehicle market.
14:32Tesla's sales are in a deep slump.
14:35The EV pioneer is in the middle of one of its worst streaks,
14:39with global sales dropping 13.5% in the April-June quarter
14:44after a 13% decline the previous quarter.
14:49Rivals from General Motors to China's BYD are rolling out high-tech, cheaper alternatives
14:55and rapidly eating into Tesla's market share.
14:58Profits plunged 71% in the January-March quarter,
15:02and analysts now predict a further 20% dip when Tesla reports its April-June results on July 23.
15:09Meanwhile, a public fallout with Donald Trump is eroding Musk's geopolitical clout, particularly in Beijing.
15:17The US is preparing to scale back EV tax subsidies,
15:21while China is tightening exports of rare-earth minerals crucial for EV manufacturing.
15:26Add to that, Trump era tariffs are complicating Tesla's supply chains, which rely heavily on Canada and Mexico.
15:34Consumer sentiment is also shifting back toward traditional petrol and diesel cars.
15:39Tesla stock is down more than 16% this year, and investors are demanding answers.
15:46Then the board two and three, they need to ultimately make sure that there's oversight politically,
15:53to make sure if any political activities interfere as CEO, that that could restrict some of its compensation.
15:59And also his time spent at Tesla.
16:01A lot of moving parts here.
16:03Tesla needs Musk, and it's very important that he spends his time being CEO of Tesla.
16:09For Elon Musk and Tesla, India is the new frontier.
16:13The company has tried to enter the Indian market since 2016,
16:17but was held back by high import duties and India's make-in-India push.
16:22Don't do the work in China and invest in Hindustan.
16:26When we come to Hindustan, we help us from our vendors.
16:30We build, we sell, we export.
16:33Now, with a 60 lakh rupees Tesla Model Y,
16:37the company's India debut may not be about immediate sales,
16:41but the long-term strategy is clear.
16:44India is now the world's third-largest automobile market,
16:48grimming with potential customers.
16:50Electric vehicles made up just 2.5% of car sales in 2024,
16:55but the Indian government is aiming to push that figure to 30% in five years,
17:00with strong incentives for clean energy adoption.
17:03India's luxury EV market is expanding rapidly,
17:07giving Tesla a chance to dominate early adopters in this niche segment.
17:12And with its strategic location and rising industrial capacity,
17:16India could also become a hub for Tesla's future manufacturing and exports across Asia and beyond.
17:22While India has opened its doors to EV makers under a liberalised EV policy,
17:28Tesla hasn't committed to manufacturing yet.
17:31Reports suggest it's still testing the waters with its showrooms,
17:35likely waiting to assess demand before making a big bet on building locally.
17:39Your report, Business Today TV.
17:52So as you saw in that report, Tesla's clearly counting on India to do well, to boost their sales.
17:58But is that a sure shot guarantee?
18:00Is it going to be a mega hit in India?
18:02The reality is that Tesla is late to really the EV party in India,
18:07because we've already seen a surge in EV options for consumers, particularly in Indian cities.
18:13If you look at Tesla's competitors alone in India, there are so many brands.
18:17BYD came in a few years ago, has started off with a bang.
18:21You'll see so many BYDs in any of the Indian cities right now.
18:24Tata Motors has gone the electric way, has many, many options available for consumers.
18:29MG Motor too. A lot of their cars are electric.
18:33They've provided a whole bunch of options for consumers,
18:36knowing that this is a market that's booming currently in India.
18:39You have also, of course, the Indian grown Mahindra, which is also looking electric right now.
18:46They've come up with an array of electric cars, even luxury segment.
18:49You have BMW, Mercedes, all of them have come out with electric vehicles and finally Hyundai too.
18:55So there's a whole bunch of options available.
18:58And the challenge really for Tesla is the fact that each of these companies have EVs
19:03with as much of tech loaded features and yet much cheaper.
19:09Take a look at this.
19:10The Tata Nexon, for example, electric vehicle, its price starts at 12.49 lakh rupees.
19:16Compare this to the Tesla Model S, the first of all their cars.
19:21And that starts at 70 lakhs.
19:23You can't even compare the sizing of a Tesla Model 3 with a Tata Nexon.
19:27Tata Punch, EV price starting at 9.99 lakh rupees.
19:31These cars have been doing well because they've also ensured they're affordable for consumers,
19:36for middle class families.
19:38The Mahindra XUV 400 price starts at 15.49 lakh rupees,
19:44but the XUV 400 and many other electric options are available from Mahindra as well.
19:51The BYD slightly more expensive, but the BYD seals price also starts at 41 lakhs.
19:56Even when it's considered to be slightly pricier than the others in the segment,
20:00it's still much cheaper than a Tesla, which like I said,
20:03starts at 70 to 80 lakh rupees for the base variant.
20:07MG Windsor, a very popular car right now.
20:10The EV price starts at 12 lakh rupees.
20:12It's an affordable option for many.
20:14That's why it's being chosen also among all of the electric vehicles available.
20:19So for Tesla, it is going to be a huge challenge to really stand out when their pricing is so high.
20:25For people to actually invest in a Tesla car, it has to be worth it.
20:29And with so many options already flooding the Indian EV market,
20:33there's a big question mark on whether Tesla will actually be successful.
20:37But this is almost in a way an experiment that Tesla is doing to see in their showrooms if there is demand for Tesla cars.
20:45Then they take steps like ensuring making in India happens.
20:49They first want to see if there's demand.
20:51But it's taken quite some time for Tesla to get here, perhaps a little too late,
20:55because a few years ago when there was that boom of EVs,
20:58if Tesla had gotten in, maybe they stood a chance because there wasn't as much competition.
21:03There's a reason Tesla hasn't been able to break in for so many years.
21:07There have been non-stop delays because of tariff roadblocks,
21:11diplomatic breakthroughs have finally ensured that Elon Musk's EV giant is now in India,
21:17and so they're eyeing India as their next big frontier.
21:20After years of anticipation, policy hurdles and speculation,
21:31Tesla is finally launched in India.
21:34The electric vehicle giant opened its first showroom in Mumbai's Pandrakurla complex on Tuesday.
21:40Tesla's India journey began in 2016 with Model 3 pre-orders.
21:45But plans fizzled out and the bookings were refunded.
21:49In 2021, Tesla registered its Indian subsidiary in Bengaluru.
21:54However, Elon Musk soon began publicly criticizing India's import duties on automobiles,
22:00calling them among the highest in the world and a major reason for Tesla's hesitation to enter the Indian market.
22:10India used to levy up to 100% duty on imported cars, making Tesla models twice as expensive.
22:16The Narendra Modi government also insisted Tesla must commit to local manufacturing first.
22:25Don't do the job to buy in China to shop in Hindustan.
22:29We help here.
22:33We'll get help here with our vendors.
22:35We'll buy there, sell it, and export it from here.
22:37Meanwhile, Tesla vehicles faced further delays due to India's mandatory homologation process,
22:43which certifies vehicles for local roads and meeting Indian safety standards.
22:50Momentum came after Prime Minister Narendra Modi met Elon Musk in New York in 2023 and again virtually in 2024.
23:00I'm confident that Tesla will win India and will do so as soon as humanly possible.
23:05I'd like to thank the Prime Minister for his support and hopefully we'll be able to announce something in the not-too-distant future.
23:13It's quite likely that there will be a significant investment and relationship with India in the future.
23:22In March 2024, India introduced a new electric vehicle policy slashing import duties to 15% for companies pledging future investment.
23:32Tesla responded swiftly by hiring teams, leasing showrooms and importing the first batch of Model Y cars.
23:43And now, Tesla will finally be seen on Indian roads with Delhi likely to get the next showroom.
23:49Bureau Report, India Today.
23:55So we'll know in the coming months if Tesla is a success, a hit or not, based on how many Teslas you see around you, in your city, on the roads.
24:03That's all we have time for in this edition of Newstruck. Thanks very much for tuning in.
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