Tesla Motors (TSLA.US) has appointed a new head for its India operations, signaling a strategic shift after the electric vehicle (EV) maker's sluggish sales start in the world’s most populous country.
According to sources familiar with the matter, Tesla has hired Sharad Agarwal, former head of Lamborghini India, to lead its local business. Agarwal, who will assume the role this week, is tasked with revitalizing Tesla’s efforts in India, where the company has so far underperformed market expectations. Unlike previous arrangements where small local teams were managed remotely by executives from China and other regional hubs, Agarwal will be Tesla’s first on-the-ground leader in India.
Tesla’s Southeast Asia director, Isabel Fan, previously oversaw the opening of two Tesla showrooms in Mumbai and Delhi in July and August, respectively. The company’s former India head, Prashanth Menon, who left in May, split his time between India and the U.S.
Agarwal departed Lamborghini about a year ago after nearly a decade leading its India operations under Volkswagen Group. During his tenure, he expanded the brand’s presence from major cities to over 60 locations, with smaller markets contributing 25% of sales. His appointment reflects Tesla’s push for deeper localization in India by leveraging his luxury automotive sales expertise—at least in the near term—to target high-end buyers.
However, Agarwal faces significant challenges: converting early consumer curiosity into sales while navigating India’s protective import tariffs (which push the base Model Y’s price to 6 million rupees, or $67,575—far above the mainstream EV price of 2.2 million rupees) and slow EV adoption (EVs currently account for just 5% of India’s auto market).
Tesla’s India performance has fallen short of internal targets. Since launching sales in mid-July, the company has reportedly secured just over 600 orders—equivalent to roughly four hours of global deliveries—with the figure slowly rising to 800 by October. To boost brand awareness, Tesla plans to ramp up marketing efforts and has set up pop-up stores in high-traffic malls, including one in Gurugram.