Introduction
Elon Musk’s Tesla has long been rumored to enter India’s electric vehicle (EV) market. However, challenges like local factory investments, regulations, and high taxes have caused delays. Recently, reports suggest that Tesla is preparing to introduce its EVs in India, starting with imported models as early as April. The company has also selected locations for its first two showrooms in Delhi and Mumbai.
Imported Models and Pricing
Industry sources indicate that Tesla plans to sell vehicles imported from its Berlin plant in India. The initial offering is expected to be priced under $25,000 (approximately ₹21 lakh), aligning with Tesla’s strategy to introduce affordable EVs in competitive global markets. Currently, the Tesla Model 3 is the company’s most affordable model, starting at $40,000 (around ₹35 lakh).
Showroom Locations
The first two Tesla showrooms in India are reported to be located in:
- Delhi: Aerocity area near the international airport.
- Mumbai: Bandra Kurla Complex (BKC), a prominent business and retail hub.
Operations at both locations are expected to commence soon. This development coincides with Tesla beginning recruitment for its India operations, with job listings for roles such as service technicians, advisory positions, customer engagement managers, and delivery operations specialists.
Reduction in Import Duties
In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced a reduction in the basic customs duty (BCD) on imported vehicles costing above $40,000 from 125% to 70%. This move aims to make high-end EVs more accessible in the Indian market. Additionally, reports suggest that import duties could be further lowered following an executive order by U.S. President Donald Trump, which imposes reciprocal tariffs on nations with high customs duties on U.S. imports. President Trump highlighted India’s high import tariffs, stating they make it challenging to sell U.S.-made cars in the country.
Local Sourcing Plans
While Tesla has not committed to manufacturing its EVs in India, the company reportedly plans to source components worth over $1 billion (approximately ₹8,690 crore) from India this year. This figure is expected to increase in the coming months, indicating Tesla’s intent to integrate Indian suppliers into its global supply chain.
Conclusion
Tesla’s anticipated entry into the Indian EV market marks a significant milestone in the country’s automotive landscape. With reduced import duties and plans for local sourcing, Tesla aims to make its mark in one of the world’s largest and fastest-growing auto markets.
