Tesla appoints local CEO in India amid renewed market push

Tesla has appointed an India CEO to lead its local operations, signalling a stronger commitment to the market. The company is changing its leadership strategy to involve more local expertise following its muted start in the third quarter.

Tesla experience center aerocity delhi india — Image: Tesla

According to a Bloomberg report, Tesla has hired Sharad Agarwal as the CEO of its Indian subsidiary, Tesla India Motors and Energy Private Limited. Agarwal joins from Mahindra & Mahindra-owned two-wheeler company Classic Legends, where he was the Chief Business Officer for a little over a year.

Prior to Classic Legends, Agarwal headed Lamborghini’s India operations for nearly nine years, during which he grew the brand’s sales more than threefold. Before that, he served as the Head of Sales at Audi India for nearly four years.

Tesla’s objective behind appointing Agarwal as its India CEO is to help it build momentum in a market where sales have fallen short of its high expectations after years of pre-launch hype. It aims to leverage his experience at Lamborghini and Audi to tap into the market’s potential more effectively while maintaining its luxury positioning.

The company previously oversaw its India operations remotely through a team based in China and other regional offices. Isabel Fan, Tesla’s Senior Director of Southeast Asia, Hong Kong and Macau, oversaw the opening of its first India showroom in Mumbai (Maharashtra) in mid-July and another outlet in Delhi nearly a month later. The absence of Elon Musk or any other global Tesla executives at these events raised questions about how strategically important India currently is for the company.

Tesla only offers the Model Y in India, in Standard Range RWD and Long Range RWD variants, priced at 5.989 million rupees (approx. 58,800 euros) and 6.789 million rupees (approx. 66,600 euros), respectively. The company imports the EV as a CBU (from China), which attracts high tariffs and results in steep pricing. By October, it had secured just over 800 orders, and at that rate, it would be unable to meet its original annual target of 2,500 units.

In addition to the two stores in Mumbai and Delhi, Tesla offers the Model Y across India through its local consumer website and fulfils the online orders through home delivery. The company has no plans to expand its physical footprint in the country in the near future.

bloomberg.com (appointment), bloomberg.com (sales)