Tesla, the leading electric vehicle (EV) manufacturer, is on the verge of launching its retail operations in India by April 2025, with plans to import vehicles from its Berlin plant. This move comes as part of Tesla CEO Elon Musk’s long-awaited entry into the Indian market, which has been in the works for several years. According to a recent report by CNBC-TV18, sources familiar with the matter have confirmed that Tesla is eyeing a significant push into India’s growing electric vehicle market.
Tesla has reportedly identified two strategic locations for showrooms in major Indian cities—Bandra Kurla Complex (BKC) in Mumbai and Aerocity near New Delhi’s international airport. The two outlets will be around 5,000 square feet each, serving as key retail hubs for the brand’s debut in India. While the official opening dates for these showrooms remain undecided, Tesla plans to initially offer imported vehicles to Indian customers, which will likely include a new EV model priced under $25,000 (approximately Rs.21 lakh).
The decision to import vehicles from the Berlin plant, rather than manufacturing locally, is seen as a temporary strategy. However, Tesla has emphasized its commitment to increasing its supply chain footprint in India. The company intends to source components from Indian Original Equipment Manufacturers (OEMs), with plans to exceed $1 billion in sourcing by 2025.
Tesla’s entry into the Indian market is a highly anticipated development. India, which is the world’s third-largest automobile market, has seen significant growth in demand for electric vehicles, driven by a rising concern for environmental sustainability and government incentives for EV adoption. However, Tesla’s plans have faced delays in the past, primarily due to the high import duties imposed by India on foreign-made cars. These tariffs, which can be as high as 100%, have been a point of contention, with Musk criticizing them multiple times. Tesla has lobbied for the reduction of these import taxes, but local automakers have strongly opposed such moves, fearing competition for their own EV production efforts.
Recently, Tesla’s efforts to enter India gained momentum after Prime Minister Narendra Modi met Elon Musk during a visit to the United States. The two leaders discussed various issues, including the development of the space, mobility, and technology sectors, further paving the way for future collaboration.
In terms of staffing, Tesla has posted several job openings in India, seeking mid-level professionals for roles such as store managers and customer relationship managers. These positions will play a crucial role in the brand’s establishment within the Indian market.
While Tesla has yet to commit to setting up manufacturing plants in India, the company remains optimistic about the potential of the Indian EV market. Musk’s vision of expanding Tesla’s global footprint, coupled with India’s growing appetite for clean and sustainable transportation, makes this entry a significant milestone for both Tesla and the Indian automobile industry.
As the Indian electric vehicle market continues to grow, Tesla’s move signals a promising future for EVs in the region, with customers anticipating the arrival of high-quality, affordable electric cars from one of the most innovative companies in the automotive sector.
