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Tesla is once again creating a buzz in the Indian market, reigniting discussions about its potential entry. This is the third time the company’s India plans have gained attention, especially after a recent meeting between Prime Minister Narendra Modi and Tesla CEO Elon Musk. Reports indicate that Tesla has started manufacturing vehicles for export to India while also exploring locations for a local production facility.
However, there has been no official confirmation from Musk or Tesla regarding these developments. As interest grows, factors like high import taxes and policy decisions will play a crucial role in shaping Tesla’s future in India.
Elon Musk | Image credit: Wikimedia Commons
Several media reports suggest that Tesla Inc. is preparing to ship several thousand electric vehicles to India in the coming months, signaling its long-anticipated entry into the market. According to Bloomberg, which cited sources familiar with the matter, the US-based EV maker plans to sell its cars in Mumbai, Delhi, and Bangalore, with sales expected to begin by the third quarter of this year
Tesla’s plans for India will largely depend on ongoing tariff discussions between the US and India. The company is waiting for possible reductions in import taxes, which currently stand at 110% for vehicles priced above $40,000. In the past, Tesla has urged the Indian government to lower these taxes and remove additional levies to make its cars more affordable. While carmakers with local manufacturing units benefit from lower tariffs, Tesla’s initial presence in India is expected to be through imports.
PM Narendra Modi meets Tesla and Twitter Owner Elon Musk |
Tesla is actively hiring for its planned mega store in Mumbai, with job postings for 13 positions across vehicle service, sales, customer support, and operations. This recruitment drive signals the company’s commitment to building a strong retail presence in India’s financial hub. In addition to Mumbai, Tesla has also identified a showroom location in New Delhi’s Aerocity, near the international airport. Both showrooms, each around 5,000 square feet, will focus on selling imported electric vehicles. However, they are not expected to function as service centers at this stage.
Tesla will face strong competition in the Indian EV market from established domestic and international automakers. Tata Motors, Mahindra Electric, and MG Motor dominate the local segment, while global brands like BYD, Hyundai, Kia, Mercedes-Benz, BMW, and Audi have already introduced premium EV offerings. With high import duties and strong local players, Tesla’s success in India will depend on its pricing strategy and expansion plans.
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