Elon Musk’s Tesla has long been rumoured to foray into India’s electric vehicle (EV) market but has faced several hurdles related to localised factory investments, regulations, and high taxes. It has previously lobbied for policy incentives as well as lower import duties. Now, a recent report suggests that the US-based company could finally be gearing up to bring its fleet of EVs to the country, beginning with several imported models being introduced as soon as April. It is also said to have finalised locations for the first two Tesla showrooms in the country, with Delhi and Mumbai likely to have been selected.
Citing industry sources, CNBC TV18 reports that the initial batch of EVs which Tesla plans to sell in India will primarily consist of vehicles imported from its Berlin plant. It is said to target a price tag of under $25,000 (roughly Rs. 22 lakh) for the first Tesla car in the country, a move in line with the company’s plans of introducing affordable EVs facing competition from the likes of BYD in the global markets.
Notably, the Tesla Model 3 is currently its most affordable model, with a base price of $40,000 (roughly Rs. 35 lakh).
The first two Tesla showrooms in India are reported to be located in Delhi’s Aerocity and Mumbai’s BKC, and operations at both locations are expected to commence soon. This move comes amidst the Elon Musk-owned EV maker beginning recruitment for its India operations. Job listings reveal vacancies for service technicians, advisory roles, customer engagement manager, and delivery operations specialist.
High Tariffs
Notably, the Union Budget 2025, announced by Finance Minister Nirmala Sitharaman on February 1, reduced the basic customs duty (BCD) on imported vehicles costing above $40,000 from 125 percent to 70 percent. Reports suggest that the same could further be lowered following the executive order signed by the US President Donald Trump which imposes reciprocal tariffs on all nations which have high customs duties on US imports. Trump remarked at the high import tariffs in India despite the recent reduction, making it difficult to sell US-made cars in the country.
Although Tesla has not guaranteed manufacturing its EVs in the country, it is reported to have plans of sourcing components worth over $1 billion (roughly Rs. 8,690 crore) from India this year, with the number potentially increasing in the coming months.
