Elon Musk’s Tesla has long been rumored to enter the Indian electric vehicle (EV) market, but the company faces numerous hurdles related to local plant investment, regulations and high taxes. It has previously lobbied for policy incentives and lower import tariffs. Now, a recent report suggests that the US company may finally be preparing to bring its electric car fleet to the country, launching several imported models as early as April. The company is also said to have finalized the sites for the first two Tesla showrooms in the country, with Delhi and Mumbai likely to have been chosen.
CNBC TV18 cited industry sources as saying that the first batch of electric cars Tesla plans to sell in India will mainly consist of vehicles imported from its Berlin plant. The country’s first Tesla car is said to be priced below $25,000 (approximately Rs 22 lakh), a move in line with the company’s plan to launch affordable electric vehicles to compete with the likes of BYD in the global market.
It is worth noting that Tesla Model 3 is currently the most affordable model, with a base price of $40,000 (approximately Rs. 35 lakh).
According to reports, the first two Tesla showrooms in India are at Aerocity in Delhi and BKC in Mumbai, and both locations are expected to start operations soon. The move comes as Elon Musk’s electric car maker begins hiring for its India operations. Job listings show vacancies for Service Technicians, Consulting Positions, Customer Engagement Managers and Delivery Operations Specialists.
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 worth more than $40,000 from 125% to 70%. There are reports that tariffs may be lowered further after US President Donald Trump signed an executive order imposing reciprocal tariffs on all countries that impose high tariffs on US imports. Trump said that despite recent reductions, India’s import tariffs remain high, making it difficult for U.S.-made cars to be sold in the country.
Although Tesla has not pledged to produce electric vehicles in India, the company reportedly plans to source more than $1 billion (approximately Rs. 8,690 crore) worth of components from India this year, and this number is likely to increase in the coming months.
