Tesla is finally making its long-anticipated entry into India’s electric vehicle (EV) market after years of regulatory roadblocks, import tax hurdles, and discussions around setting up local manufacturing.
A fresh report suggests that the first batch of Tesla cars—comprising a few thousand units—will be docking at Mumbai port in the coming months, setting the stage for the brand’s official launch. Sales are expected to begin later this year.
Initially, Tesla plans to import vehicles from its Berlin plant before considering local production. This marks a significant step towards establishing its presence in the world’s most populous country, which is steadily embracing EV adoption.
Tesla EVs arriving in India
According to industry insiders cited by Bloomberg, Tesla will kick off its sales this year soon, starting with three major cities: Bengaluru, Delhi, and Mumbai. The company has reportedly locked in locations for its first two showrooms, one in Delhi’s Aerocity and another in Mumbai’s Bandra Kurla Complex (BKC).
While Tesla has a broad portfolio, including premium models like the Model S, Model X, and the recently launched Cybertruck, there is speculation over which models will be available in India first. Depending on ongoing trade negotiations between India and the US, the company might introduce a more affordable EV, potentially priced under $25,000 (around Rs 22 lakh). Tesla’s cheapest offering, the Model 3, currently starts at around $40,000 (roughly Rs 35 lakh).
Government policies and import tariffs
Tesla’s entry comes as India tweaks its policies to accommodate EV giants. The Indian government is reportedly considering increasing the cap on imported vehicles under the concessional tax scheme from the current limit of 8,000 cars to 50,000. This could be part of a broader trade agreement with the US to facilitate Tesla’s market entry.
Additionally, the recent Union Budget 2025 brought some relief for luxury EV imports. Finance Minister Nirmala Sitharaman announced a reduction in basic customs duty (BCD) on imported vehicles priced above $40,000, slashing it from 125 percent to 70 percent.
Further discussions are ongoing about the possibility of reducing import tariffs on select EV models, which could significantly impact Tesla’s pricing strategy in India.
Tesla begins hiring in India.
In preparation for its Indian launch, Tesla has started hiring for key roles nationwide. Job listings indicate vacancies for service technicians, customer engagement managers, delivery operations specialists, and advisory roles, with positions currently open in Delhi and Mumbai.
With the groundwork laid, Tesla’s India debut is now closer than ever. As the EV giant prepares to roll out its first batch of cars, all eyes will be on how it navigates the competitive landscape and adapts to India’s evolving EV policies.
