Self-drive or Gear Shifts?

As the world seemingly moves on from Tesla, it remains to be seen if the US carmaker's India strategy pays off

- By JASODHARA BANERJEE

IN THE SECOND WEEK OF JULY, India's already-crowded electric vehicle (EV) market witnessed the entry of two global players: US-based Tesla and Vietnam-based VinFast.

While Tesla opened its first experience showroom in Mumbai's Maker Maxity in Bandra-Kurla Complex on July 15 (and commenced online bookings as well about a week later), VinFast began to take pre-bookings for two of its models on the same day.

The two companies are taking two different paths into the India market: Tesla will be importing completely-built-units (CBUs), reportedly from either the US or China, whereas VinFast will be assembling its VF6 and VF7 models at its $2-billion plant in Thoothukudi, Tamil Nadu, July onwards.

Tesla's entry into the Indian market comes at a time when its global sales have hit an all-time low, and its founder Elon Musk's brief, tumultuous political career in the US has come to an abrupt end. The company gets about 50 percent of its revenues from the US market, about 20 percent from China—home to its current nemesis, EV makers Byd—another 30 percent from the rest of the world. In the second quarter of 2025, Tesla's sales in the US fell by 6.3 percent, the third consecutive quarterly decline, while sales in China dropped about 12 percent. In Europe, sales having been falling steadily over five months, making its market share decline from 1.8 percent in May last year to 1.2 percent this May.