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'Tesla's Pure D2C Model Won't Work in India' -FADA President

The retailer association points out that India’s complex market dynamics calls for a ‘phygital’ model—not a purely D2C approach.

By Darshan Nakhwa & Kiran Murali, and Prerna Lidhoo

29 Mar 2025

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'Tesla's Pure D2C Model Won't Work in India' -FADA President

Tesla has redefined the global automotive landscape with its advanced electric vehicles, innovative technology, and a direct-to-consumer (D2C) sales model that eliminates the need for traditional dealerships. This strategy has been successful in developed markets such as the U.S., China, and Europe, where digital infrastructure and consumer behaviour facilitate direct online sales.

However, as Tesla seeks to establish presence in India, the key question is – can a purely D2C model work in this market? At least, the dealers don’t seem to think so. CS Vigneshwar, President of the Federation of Automobile Dealers Associations (FADA), believes India’s unique challenges—geographic ...

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