Tesla is reportedly gearing up to enter the Indian market as soon as April, with plans to import electric vehicles from its Berlin factory. According to a CNBC-TV18 report, the company is looking to introduce an affordable EV priced under $25,000 (approximately ₹21.73 lakh), aiming to attract a broader customer base in India’s growing EV segment.
Tesla has already identified prime locations for its company-owned showrooms, with the first two expected to open in Delhi’s Aerocity and Mumbai’s BKC. The company has also begun hiring for key positions in Mumbai, including store managers, service advisors, and service technicians, indicating its commitment to establishing a strong local presence.
India recently reduced import duties on high-end electric cars, lowering the basic customs duty (BCD) on vehicles priced above $40,000 from 100% to 70%. However, for EVs costing up to $40,000, the duty remains at 70%. Amidst ongoing trade discussions, India is considering further tariff reductions, particularly in response to the United States’ reciprocal trade policy, which could take effect in April following a federal review.
On 13th February 2025, Tesla CEO Elon Musk met with Prime Minister Narendra Modi for an hour-long discussion covering key topics such as space, mobility, technology, and India’s reform agenda. Modi emphasized the country’s commitment to innovation and economic growth. Musk later described the meeting as an honor, though it remains unclear whether he met Modi as Tesla’s CEO or in an official US government capacity.
While Tesla has yet to announce plans for a manufacturing plant in India, sources suggest the company will source over $1 billion worth of components from Indian suppliers this year, with this figure expected to rise significantly in the coming months.
As part of broader trade discussions, Musk is likely to visit India later this year alongside former US President Donald Trump during the Quad Summit. Ahead of this visit, US Commerce Secretary Howard Lutnick is expected to meet India’s Commerce Minister Piyush Goyal to discuss a potential trade deal, including revisions to automobile tariffs.
Tesla’s potential entry into India could mark a significant shift in the country’s EV landscape, bringing premium electric mobility to Indian consumers while fostering stronger economic ties between the US and India.
