Tesla to start EV sales in India by April with Delhi & Mumbai showrooms will be priced near ₹21 lakh, and imports from Berlin.
Tesla is looking to start its retail operations in India by April this year, as per a new report, in what will be the first big step for the EV maker after years of waiting to set foot in the country. Selling imported EVs from its manufacturing plant in Berlin, the price range is anticipated to begin at ₹21 lakh, for a sub-$25,000 model. The news comes as Tesla CEO Elon Musk’s efforts to enter the Indian market are finally materializing after years of discussions and delays.
Showroom Locations
Tesla has reportedly confirmed its plan for showrooms in two biggest cities in India, Mumbai and New Delhi. Tesla India showrooms will be positioned in key business hubs of the respective cities Bandra-Kurla Complex (BKC) in Mumbai and Aerocity near New Delhi International Airport. Both showrooms are likely to be around 5,000 square feet and will be the first point of sale for Tesla’s electric cars in India.
The move is a tax break for Tesla, as it follows the company putting its entry into the Indian market into the freezer back in 2022. The announcement comes after longstanding negotiations between Tesla and the Indian government regarding establishing car showrooms and retail operations in the country, though reports that Tesla has been looking to set up showroom spaces in India surfaced as early as late 2023. The new showrooms are envisaged to concentrate on selling imported EVs, and will not include service centers for now.
Affordable EVs
Tesla is expected to shake up the Indian marketplace by pricing its electric vehicles keenly. The base EV will cost no more than ₹21 lakh (some $25,000) enabling it to be more affordable to more of the audience in India. Given these factors, analysts believe this price point will attract Indian customers who are becoming increasingly interested in EVs mindful of climbing fuel prices and the government’s push for cleaner energy solutions.
While Tesla has not yet committed to local production of EVs in India, the carmaker is likely to source a larger percentage of components sourced from OEMs in India. Reports claim that Tesla aims to spend above $1 billion on component sourcing by 2025, a strategy that is sure to aid in bringing down the cost of vehicles and making them more affordable for Indian buyers in the long run.
India Expansion
India, the world’s third-biggest auto market, has long been viewed as an important subcontinent for Tesla’s growth. The country is increasingly prioritizing electric mobility, which is seeing steady growth in EV demand, supplemented by government incentives and pollution concerns. Tesla’s much-anticipated entry into India isn’t quite so simple; the company has already postponed its India plans multiple times, citing several policy hurdles, including the high import duties on foreign-made vehicles.
Tesla’s chief executive Elon Musk has also publicly spoken out against India’s import duties, which can reach up to 100%, increasing the cost for companies such as Tesla to sell their vehicles in the country. Tesla was also pushing the Indian government to reduce such duties to cheaper electric vehicles. The company also faced pushback from local automakers who were worried that Tesla’s presence in the market could impact their own EV production plans.
Nonetheless, despite these challenges for Tesla, it seems they are now forging ahead with India plans which suggests Musk’s confidence in the Indian market & with demand for EVs continuing to rise. The firm is starting with imported vehicles, marking its intent to ascertain how the market responds, before moving on to manufacturing in India.
Musk’s Vision
Elon Musk held talks with Indian Prime Minister Narendra Modi in recent weeks, during his visit to the United States. The two interacted concerning a range of issues, including technology, mobility solutions, and space exploration, reports indicate. Though the exact details of the conversations were not made public, it was clear that Musk is interested in India’s growth in its tech and mobility sectors.
It also follows a recent meeting between the senior officials of the U.S. and India over a possible trade deal with both sides vowing to resolve the contentious issue of high import duties. This is considered an invitation for closer trade ties as well as to make India a viable market for U.S.-based companies such as Tesla.
Job Listings
As part of its India entry, Tesla has already started posting mid-level job listings, including customer relationship managers and store managers, to set up its showrooms. This means Tesla is working pragmatically towards a retail and support presence for its emerging customer base in India. This expansion, along with the hiring of hundreds of staff including sales, service, administrative, and support employees, is expected to serve a global market.
The recruitment also suggests that it can be interpreted that Tesla is looking forward to building a strong local team to execute the sales operations in India. By hiring Indian talent, Tesla is set to seek a stronger connection with Indian consumers and ensure that its offerings are in sync with local tastes and preferences.
Import Tariffs
Tesla will continue to have to deal with the challenges in India, especially regarding the high import duties on foreign automakers. Tesla, and other foreign automakers that make EVs, are at the mercy of India’s 100% import duty on vehicles combined with our own very heavy taxes (which we need to find a way to make less punishing) to turn out a competitive price for their EVs. Elon Musk has previously criticised these tariffs, which have hindered the company’s entry into the Indian market.
As a result of this, the Indian government has been lobbied by Tesla to lower the import taxes on EVs. The local automakers have opposed this move, citing that Tesla’s advent in India might hurt their EV aspirations, however, it would be interesting to see whether the government will ease these tariffs to encourage more EV investment in the country.
Local Competition
India has several automakers in it, and many have already placed their sights on the growing EV market which will likely pose serious challenges for Tesla. Tata Motors and Mahindra Electric have also already debuted their electric cars in India, and Tata Motors holds the top spot in the Indian EV space. These companies have been in the driver’s seat, so to speak, when it comes to understanding Indian consumers and delivering vehicles to suit local tastes and needs.
Even so, a Tesla launch in the region could change how those numbers and this industry shape up, especially considering the premium EV space that Tesla occupies and how it would fare in India concerning other automakers. Tesla is known for its technology, high range, and strong charging infrastructure, and this should appeal to Indian buyers searching for high-performance EVs.
Future Plans
While Tesla has not yet asked to set up its factory in India, this could be a step toward a production facility in the country. If successful, Tesla’s operations could pave the way for other international automakers to tap into India’s burgeoning EV market.
Importing cars initially and progressively domesticating the supply chain will help the company acclimatize to the Indian customers and then further cement its footprint in a still-untapped volume market. If the company is indeed successful upon entry it might pave the way for Tesla to build a local manufacturing unit here enabling it to offer Indian buyers lower-cost EV options.
Electric Revolution
Finally, Tesla India retail operations in India will officially start in April 2025, followed by showrooms in Delhi and Mumbai. The base variant, which will be priced below ₹21 lakh, will be shipped as a CKD unit from Tesla’s Berlin factory. While still not completely committed to producing its EVs in India, Tesla plans to build out local component sourcing, which will support the growing Indian automotive ecosystem. Tesla’s entry into India comes at a potentially inflectional point for the country’s move toward electric mobility — and as the automaker faces obstacles, such as steep import duties. The prospect ahead for Tesla looks bright, but competition from local automakers will continue to play a major role in determining the progress of the company’s Indian adventure.
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