Tesla hires ex-Lamborghini boss to revive India operations

Tesla has named a new head for its India business as the electric vehicle maker tries to turn around disappointing sales in one of the world’s biggest car markets.

The company has brought on Sharad Agarwal, who formerly ran Lamborghini’s India operations, to take charge of the country. He begins work this week, people with knowledge of the matter told Bloomberg.

The move represents a change in how Tesla manages its India presence. Until now, a handful of local employees reported to managers based in China and other regional offices. Agarwal will work from India and lead operations directly on the ground.

Isabel Fan, who handles Southeast Asia for Tesla, had managed the opening of the company’s two showrooms in Mumbai and New Delhi during July and August. The earlier country head, Prashanth Menon, left the position in May. He had split his time between India and the United States.

People familiar with the decision said Tesla wants to build a strategy better suited to the Indian market by having local leadership. Tesla representatives did not respond to requests for comment. Agarwal could not be reached.

By hiring someone with experience selling expensive cars, Tesla appears focused on wealthy buyers rather than trying to reach everyday consumers, at least right now. Agarwal will need to turn initial interest into actual sales while dealing with India’s high import taxes and limited demand for electric vehicles.

Tesla’s orders fall short of expectations in India

Tesla’s entry into India has not met its own targets. The American company had received just over 600 orders since starting sales in mid-July, Bloomberg News reported in September. To put that in perspective, Tesla delivers that many vehicles worldwide every four hours. By October, total orders had crept up to over 800 vehicles, according to a person with knowledge of the figures.

The weak response shows the challenges Tesla faces in India. High import duties have pushed the starting price of the Model Y above 6 million rupees, which equals $67,575.

Meanwhile, most electric vehicles sold in India cost around 2.2 million rupees, according to JATO Dynamics. Electric vehicles account for just over 5% of total car sales in the country.

Tesla ramps up marketing efforts

Tesla intends to increase its marketing activities to make more people aware of its brand and products, a person familiar with the plans said. The company has set up temporary displays in crowded shopping centers around the National Capital Region, including one location in Gurgaon district.

Before leaving Lamborghini roughly a year ago, Agarwal had led the Volkswagen-owned brand’s India business for nearly a decade. During that time, he helped make Lamborghini the top seller in India’s super-luxury car segment.

He also grew the brand’s footprint from major cities to more than 60 locations across the country. Smaller markets eventually made up a quarter of sales.

According to his LinkedIn page, Agarwal joined Classic Legends, a unit of Mahindra & Mahindra, as chief business officer in November 2024.

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