Tesla is gearing up to make its long-awaited entry into India’s electric vehicle (EV) market after years of dealing with hurdles related to localised factory investments, regulations, and high import taxes. Now, a report suggests that the initial batch of the Tesla cars, consisting of a few thousand units, will be arriving at the Mumbai port in the coming months ahead of the anticipated commencement of sales that is slated to begin later this year.
The Elon Musk-owned automotive company is initially expected to import EVs from its Berlin plant for sale in the world’s most populous country before potentially localising production in the forthcoming years.
Tesla EVs Arriving in India
Citing unnamed industry sources, Bloomberg reports that Tesla will commence sale of its EVs in the third quarter of the year starting with three major Indian cities — Bengaluru, Delhi, and Mumbai. Previously, the company was reported to have finalised the locations of its first two showrooms in India, located in Delhi’s Aerocity and Mumbai’s Bandra Kurla Complex (BKC).
However, it remains unclear which models Tesla decides to bring to India. While it has several high-end models, such as the Tesla Model 3, Model X, Model S, and the Cybertruck in its portfolio, reports have suggested that it might first introduce an EV under $25,000 (roughly Rs. 22 lakh). This is said to depend upon the ongoing talks around tariffs between India and the US. Notably, the Tesla Model 3 is currently its most affordable model, with a base price of $40,000 (roughly Rs. 35 lakh).
Sources reportedly suggest that India might also raise the cap on imported vehicles under the concessional tax policy from the current 8,000 limit to 50,000 cars as part of the broader trade deal with the US. The Union Budget 2025, announced by Finance Minister Nirmala Sitharaman on February 1, reduced the basic customs duty (BCD) on imported vehicles costing above $40,000 from 125 percent to 70 percent. Thus, other options, such as reducing the basic customs duty (BCD) further on imported cars as well as reducing tariffs on a select number of models, are also thought to be in discussion.
Amidst its plans of making its entry in India, Tesla has also commenced recruitment for a number of roles for its country operations. This includes vacancies Job listings reveal for service technicians, advisory roles, customer engagement manager, and delivery operations specialist in Delhi and Mumbai.
