Elon Musk’s Tesla is set to enter the Indian market by April, starting with imported vehicles from its Berlin plant, according to report. It has finalized locations for two showrooms in New Delhi and Mumbai. This step brings the company closer to launching its electric vehicles in India.
Tesla Resumes Expansion Plans
According to sources, Tesla has been searching for showroom spaces in India since late last year. The company had paused its India entry in 2022 but has now revived its plans.
Last week, Prime Minister Narendra Modi met Elon Musk in the United States. They discussed key topics like space, mobility, and technology.
Where Tesla Will Set Up Showrooms
Tesla has chosen a showroom space in New Delhi’s Aerocity, near Indira Gandhi International Airport. This area is a major business hub with luxury hotels, retail stores, and global corporate offices.
In Mumbai, Tesla has selected a location in Bandra Kurla Complex (BKC), a key business and retail district near the city’s airport.
Each showroom will be around 5,000 square feet in size. However, Tesla has not announced the launch dates yet.
Affordable EV Model in the Pipeline
The company plans to introduce an electric vehicle priced under $25,000 (approximately ₹21 lakh) for Indian buyers. However, Tesla has not yet committed to setting up a manufacturing facility in the country. These new locations will serve only as showrooms, not service centers. The company will directly operate them.
Increasing Component Sourcing from India
Tesla aims to expand its component sourcing from Indian suppliers, with projections to exceed $1 billion by 2025.
Hiring Begins for India Operations
Tesla has already posted job openings for 13 mid-level positions in India. These include roles like store managers and customer relationship managers.
India’s High Import Tariffs a Concern
Musk has consistently criticized India’s steep import duties, which stand at nearly 100% for electric vehicles. Tesla has lobbied for tariff reductions but has faced resistance from local automakers worried about competition. They believe Tesla’s entry could affect their EV business.
US-India Trade Talks Address Tariffs
Last week, US President Donald Trump highlighted India’s high car import duties but agreed with Prime Minister Narendra Modi to work towards resolving trade issues, including those affecting Tesla’s entry.
Tesla has also begun hiring for key roles in India, signaling its commitment to establishing a strong retail presence. However, the showrooms will focus solely on sales, with no service centers planned initially.
