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Tesla is also hoping for further reductions in import duties, which currently stand at 70%
Tesla In India
Tesla CEO Elon Musk is planning to launch retail operations in India by April, according to a February 19 report by CNBC-TV18, citing sources familiar with the development. The company is considering importing electric cars from its Berlin plant to kick-start operations.
Showroom locations have been identified in Mumbai’s BKC business district and Aerocity in New Delhi. Tesla’s initial plans include launching an electric vehicle priced under $25,000 (around Rs 22 lakh) for the Indian market.
While Tesla has not yet committed to manufacturing electric cars in India, it plans to significantly increase the sourcing of components from Indian OEM suppliers. CNBC-TV18 reported that sourcing from the domestic ecosystem could exceed $1 billion by 2025.
The global EV leader is also hoping for further reductions in import duties, which currently stand at 70%, in light of reciprocal tariffs announced by the Trump administration. While Tesla had previously hesitated to enter the Indian market due to high import duties, the Indian government has lowered the customs duty on high-end cars costing over $40,000 from 110% to 70%.
The Commerce Ministry has reportedly called for an Inter-Ministerial Meeting to discuss trade ties with the USA, with the automobile sector tariffs expected to be a key topic.
Tesla is also exploring land parcels in Maharashtra for a potential manufacturing presence in India.
Additionally, CNBC-TV18 reported that Elon Musk is likely to accompany US President Trump during a potential visit to India later this year.
This comes just days after Tesla began hiring in India, listing 13 job openings on LinkedIn. The recent developments follow a one-on-one meeting between Musk and Indian Prime Minister Narendra Modi earlier this month, during which both nations agreed to start discussions on strengthening bilateral trade.
