Tesla is planning to enter the Indian market with showrooms in New Delhi and Mumbai as early as April 2025. The showrooms will be located in Aerocity, New Delhi, and Bandra Kurla Complex (BKC) in Mumbai, both high-traffic commercial zones. These will be standalone retail stores and not service outlets.

Tesla's entry into India marks a significant step for the company, which had previously considered entering the Indian market in 2022 but postponed those plans due to regulatory barriers, high import duties, and infrastructure challenges. Overcoming these hurdles, Tesla refocused on establishing a retail presence in India last year, aiming to cultivate a local connection and support Indian consumers.

Tesla's entry is expected to significantly impact India's EV industry by driving quicker EV growth through its advanced technology, revolutionary cars, and potential government support. The company's technology, competitive pricing, and possible government incentives could substantially increase the number of electric cars on Indian roads.

This renewed effort gained momentum after a meeting between Prime Minister Narendra Modi and Tesla CEO Elon Musk in the United States. The discussions encompassed space, mobility, and technology, highlighting India's focus on promoting innovation and global partnerships.

The showrooms in Delhi and Mumbai will span approximately 5,000 square feet. Tesla has also begun hiring for various positions in India, including store and customer relationship managers. Recent job listings indicate the company is seeking to fill 14 roles.

Tesla is expected to introduce imported EVs from its Berlin plant, with prices starting around ₹21 lakh (approximately $25,000). While initial plans focus on imported vehicles, local production may be considered if sales volumes justify the investment. The Model Y is expected to launch in the second half of 2025.

The Indian government has reduced customs duties on imported vehicles priced above $40,000 to 70%.

Tesla has started recruiting for various roles in India, including positions in business operations and customer support, specifically for the Mumbai Suburban area.

While initially focusing on imports, Tesla is also exploring land parcels in Maharashtra for a potential manufacturing presence. They also intend to increase sourcing components from Indian OEM suppliers, potentially exceeding $1 billion by 2025.

Agencies