Localization strategy accelerates! Tesla, Inc. (TSLA.US) appoints former Lamborghini executive to head India operations.

Tesla, Inc. (TSLA.US) has appointed a new head for its India region, signaling a shift in market strategy for the electric car manufacturer in the world's most populous country where it has struggled to gain traction. According to sources, Tesla, Inc. has hired Sharad Agarwal, who previously led Lamborghini's business in India, to lead the local operations. Sources added that Agarwal will take up his new role this week, with the task of reviving Tesla, Inc.'s efforts in the Indian market, which have so far fallen short of expectations. Unlike the previous model of managing small local teams in India remotely from China and other regional centers, Agarwal will be the permanent local leader for Tesla, Inc. It is reported that Isabel Fan, Tesla, Inc.'s Southeast Asia director, supervised the opening of Tesla, Inc.'s two showrooms in India - in Mumbai and Delhi in July and August respectively. The former head of Tesla, Inc. in India, Prashanth Menon, who resigned in May, had offices in both India and the United States. Agarwal left Lamborghini about a year ago. Prior to that, he had been at the helm of Lamborghini's business in India under the Volkswagen Group for nearly a decade, helping the brand establish a dominant position in the super deluxe market in India. He extended the brand's reach from major cities to more than 60 cities, with smaller markets contributing a quarter of the sales. Sources say that Agarwal's appointment is a key step for Tesla, Inc. in implementing a deeper localization strategy in India. By bringing in a leader with a background in high-end car sales, Tesla, Inc. is focusing on Deluxe Corporation vehicle buyers - at least for now. Agarwal's challenge will be to convert early market curiosity into actual sales, while also dealing with India's protective tariffs and the slow adoption of electric vehicles. The Battle Ahead Tesla, Inc.'s performance in the Indian market has fallen short of its own expectations so far. The American electric car maker reportedly only garnered over 600 orders since starting sales in India in mid-July, roughly equivalent to its global deliveries every four hours. Sources revealed that this number had slowly increased to over 800 by October. The lackluster sales highlight the challenges Tesla, Inc. faces in India. According to JATO Dynamics data, high import duties have pushed the price of the entry-level Model Y to 6 million rupees (about $67,575), far exceeding the mainstream price range of 2.2 million rupees for electric cars in the Indian market. Meanwhile, electric vehicles currently account for only 5% of total car sales in India. Sources say that Tesla, Inc. plans to increase its marketing investment in India to boost brand and product awareness, and has set up pop-up stores in busy shopping malls in the capital region, including a showroom in Gurugram.