Tesla could enter the Indian market as early as April, according to sources familiar with the company’s plans. A report by CNBC-TV18 noted that Tesla is considering importing electric cars from its Berlin factory to sell in India. The company is reportedly looking to introduce an affordable EV priced under $25,000 (Rs. 21,72,675 approx.) in the country.
Showrooms and Hiring in India
Industry sources said Tesla has already identified locations for its company-owned showrooms. The first two are expected to open in Delhi’s Aerocity and Mumbai’s BKC, with operations commencing soon.
Tesla has also begun hiring for various roles in Mumbai, including store managers, service advisors, and service technicians, indicating its plans to establish a strong presence.
Import Duty Reductions and Trade Talks
India’s recent budget reduced the basic customs duty (BCD) on imported cars priced above $40,000 from 100% to 70%. However, for cars costing up to $40,000, the duty remains at 70%.
A report highlighted that India could further cut tariffs on electric cars, considering the threat of reciprocal tariffs from the United States. President Donald Trump recently signed an executive order imposing reciprocal tariffs on countries with high duties on American imports. This policy could take effect in April, following a review by US federal agencies.
Elon Musk’s Meeting with PM Modi
On February 13, Elon Musk met with Prime Minister Narendra Modi for an hour-long discussion. Modi later tweeted that they discussed key topics, including space, mobility, technology, and innovation. He also mentioned India’s push for reforms and its vision of “Minimum Government, Maximum Governance.”
Musk, in his tweet, described the meeting as an honor. When asked whether Musk met the PM as Tesla’s CEO or in an official capacity for the US government, Trump said he was unsure, but Musk may have business interests in India.
Tesla’s Investment in India
While Tesla has not committed to setting up a manufacturing plant in India yet, sources indicated that the company plans to source over $1 billion worth of components from Indian suppliers this year. This figure is expected to rise significantly in the coming months.
Upcoming US-India Trade Talks
Musk is likely to visit India alongside President Trump during the Quad Summit in the fall. Ahead of this, a meeting between US Commerce Secretary Howard Lutnick and India’s Commerce Minister Piyush Goyal is expected. The leaders will discuss a potential trade deal, including automobile tariffs.