Tesla Entry in India Market by April with Plans Showrooms, Hiring, and Major Investments
Tesla may enter the Indian market as early as April, according to sources familiar with the company’s plans. A CNBC-TV18 report suggests that Tesla is considering importing electric vehicles from its Berlin factory to sell in India. The company is also reportedly working on an affordable EV priced under $25,000 (approx. ₹21.73 lakh) for the Indian market.
Showrooms and Hiring in India -
Industry sources reveal that Tesla has already identified locations for its company-owned showrooms, with the first two expected to open in Delhi’s Aerocity and Mumbai’s BKC soon.
Additionally, Tesla has started hiring in Mumbai for roles such as store managers, service advisors, and service technicians, signaling its intent to establish a strong presence in the country.
Import Duty Cuts and Trade Talks -
India’s latest budget lowered the basic customs duty (BCD) on imported cars priced above $40,000 from 100% to 70%, while the duty for cars costing up to $40,000 remains at 70%.
Reports also indicate that India might further reduce EV tariffs, considering the potential impact of reciprocal tariffs imposed by the U.S.. Former President Donald Trump recently signed an executive order introducing reciprocal tariffs, which could take effect in April, pending a review by U.S. federal agencies.
Elon Musk’s Meeting with PM Modi -
On February 13, Elon Musk met Prime Minister Narendra Modi for a one-hour discussion. Modi later tweeted that they covered key topics such as space, mobility, technology, and innovation, aligning with India’s vision of "Minimum Government, Maximum Governance."
Musk described the meeting as an honor in his tweet. When asked whether Musk met Modi in his capacity as Tesla’s CEO or as a U.S. representative, Trump stated he was unsure but acknowledged Musk’s business interests in India.
Tesla’s Investment Plans in India -
Although Tesla has not yet committed to setting up a manufacturing plant in India, sources suggest the company plans to source over $1 billion worth of components from Indian suppliers this year, with this figure expected to increase significantly in the near future.
Upcoming U.S.-India Trade Talks -
Elon Musk is likely to visit India later this year alongside President Trump during the Quad Summit. Ahead of this, U.S. Commerce Secretary Howard Lutnick and India’s Commerce Minister Piyush Goyal are expected to discuss a potential trade deal, including automobile tariffs.
