Tesla, the world’s leading electric vehicle (EV) manufacturer, is set to launch its retail operations in India by April, according to a February 19 report by CNBC-TV18. Citing sources familiar with the development, the report states that Tesla plans to import electric cars from its Berlin facility to initiate sales in the Indian market.
Showroom locations have already been identified in Mumbai’s Bandra-Kurla Complex (BKC) business district and Aerocity in New Delhi. As part of its initial strategy, Tesla aims to introduce an electric vehicle priced under $25,000 (approximately ₹22 lakh) to cater to Indian consumers.
While Tesla has yet to commit to manufacturing EVs in India, the company is planning to ramp up its sourcing of components from Indian original equipment manufacturers (OEMs). According to CNBC-TV18, Tesla’s sourcing from the domestic supplier ecosystem could exceed $1 billion by 2025.
Tesla has long advocated for a reduction in India’s high import duties, which had previously deterred its entry into the market. Although the Indian government recently lowered customs duties on high-end cars priced above $40,000 from 110% to 70%, Tesla is hoping for further reductions, especially in response to reciprocal tariffs announced by the Trump administration.
In light of these developments, India’s Commerce Ministry has reportedly scheduled an inter-ministerial meeting to discuss trade ties with the United States, with automobile sector tariffs expected to be a major agenda item.
Tesla is also considering land parcels in Maharashtra for a potential manufacturing facility, indicating its long-term commitment to India. The company’s expansion plans gained momentum following a recent meeting between Tesla CEO Elon Musk and Indian Prime Minister Narendra Modi, during which both sides agreed to initiate discussions on strengthening bilateral trade.
Further fueling speculation about Tesla’s growing focus on India, the company has begun hiring locally, posting 13 job openings on LinkedIn. Additionally, CNBC-TV18 has reported that Elon Musk is likely to accompany U.S. President Donald Trump on a potential visit to India later this year.
With its ambitious plans, Tesla’s entry into India could reshape the country’s EV landscape, fostering innovation and increasing competition in the sector.
