After years of speculation and negotiations, Tesla appears to be gearing up for its entry into India, with plans to introduce imported EVs as early as April 2025. According to reports, the company has finalized locations for its first two showrooms in Delhi (Aerocity) and Mumbai (BKC), marking a significant step toward establishing its presence in the Indian market.
Initial Tesla Models and Pricing in India
Industry sources indicate that Tesla will initially sell vehicles imported from its Berlin Gigafactory, with an expected starting price of under $25,000 (approximately ₹22 lakh). This aligns with Tesla’s global strategy of making EVs more affordable, especially as it faces competition from Chinese EV giant BYD.
For context, Tesla’s most affordable model globally, the Model 3, is currently priced at $40,000 (₹35 lakh). The expected India launch model, likely an all-new budget-friendly EV, could offer a significantly lower price point.
Hiring in India Signals Tesla’s Expansion Plans
Tesla has also begun hiring for its India operations, with job listings for:
- Service Technicians
- Customer Engagement Managers
- Advisory Roles
- Delivery Operations Specialists
This hiring push reinforces the company’s commitment to building an after-sales service and support network, crucial for long-term success in the Indian market.
Reduced Import Duties & Tariff Concerns
India’s 2025 Union Budget introduced a reduction in basic customs duty (BCD) on imported vehicles over $40,000 from 125% to 70%, making Tesla’s entry somewhat more feasible. However, the tariff is still high compared to global standards.
Adding to the complexity, U.S. President Donald Trump recently signed an executive order imposing reciprocal tariffs on countries with high duties on U.S. imports, with India being a key focus. He specifically criticized the remaining high import tariffs in India, which still make it challenging for U.S. carmakers to compete in the country.
Local Sourcing & Future Manufacturing Possibilities
While Tesla has not yet committed to manufacturing in India, reports suggest the company plans to source over $1 billion (₹8,690 crore) worth of components from Indian suppliers in 2025. This figure could increase as Tesla deepens its supply chain in the country.
What This Means for India’s EV Market
Tesla’s entry into India could reshape the country’s electric vehicle landscape, increasing competition for existing players like Tata Motors, Mahindra, and Ola Electric, while also encouraging further infrastructure development for charging networks and EV adoption.
With showrooms set to launch soon, imports arriving in April, and hiring underway, Tesla’s long-awaited entry into India is closer than ever.
