Tesla is finally coming to India! — Here’s everything you need to know

If you take even a bit of interest in the Indian automotive industry, algorithms would have already flooded your social feeds with a slew of posts citing Tesla’s entry to the Indian market. After commencing the first pre-orders of its cars close to over a decade ago, Tesla is finally gaining momentum with its India entry plans, which have reached an advanced stage as we speak. In this article, we uncover everything surrounding Tesla India launch plans and tell you what to expect from the world’s most popular EV-maker.

A bit of history first

Tesla’s interest in the Indian market dates back to over a decade, when the carmaker officially commenced pre-orders for its cars for India. However, nothing materialised since then and those who had pre-booked their cars eventually pulled off. Tesla began talks to enter the Indian market back in 2022-23, hunting locations for its office and dealerships while also negotiating with the Indian government on relaxation of taxes. Tesla also set up its own research and development centre in Bangalore, Karnataka. However, the talks didn’t turn out to be as fruitful as Musk expected, with the Indian government being adamant on local manufacturing, something that Tesla has been contemplating for long but hesitating to put the money on the table.

Tesla hiring in India begins 

This news hit like a tornado and caught on the bandwagon of every news circulation around the country. A series of job postings listed on Tesla’s LinkedIn page, only a few days after PM Modi’s official meeting with Elon Musk, CEO of Tesla. Tesla hiring in India reinforces Tesla’s intent to step into the Indian market and as a result, it sparked a slew of rumours. A few of them mention a Tesla EV price under USD 25,000 (approximately 22 lakh) hitting the Indian shores and a manufacturing facility establishment in Maharashtra in association with Tata Motors.

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But those are just rumours and it is worth adding that Tesla India hiring has only begun for its sales and service network as of now. Tesla India job listings include roles for service advisor, parts advisor, service technician, service manager, sales & customer support, store manager, sales & customer support, business operations analyst, customer support supervisor, customer support specialist, delivery operations specialist, order operations specialist, inside sales advisor, and consumer engagement manager.

Tesla dealership coming in Delhi and Mumbai

We recently reported that Tesla has shortlisted Delhi and Mumbai as two of its starting points in the Indian market. Reports now claim that Tesla has finalised locations for its dealerships in India—Aerocity in New Delhi and Bandra Kurla Complex in Mumbai—both of which are very popular for their commercial excellence and heavy footfall. Tesla is likely to begin its operations with these two dealerships from as early as April 2025. What’s also interesting to note is that these dealerships will be direct undertakings of Tesla Motors, moving away from the conventional dealership route. It remains to be seen how this model pans out in the Indian context, which otherwise has been a very successful model in the global scheme of things, as it results in a more streamlined and direct communication with the customers.

Tesla cars in India to be CBUs first

With Tesla yet to comment on its intent to set up an assembly plant, beginning with completely built units (CBUs), or direct imports, is the only option for the American EV-maker. Reports claim that Tesla will import its cars to India from the Berlin manufacturing plant and we are yet to know what models these are going to be. The most obvious choice for India has to be the Model 3 and Model Y, as both these models are affordable and offer long range.

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Tesla India plant likely in Maharashtra

Reports also suggest that Tesla is in talks with the Maharashtra government to set up a manufacturing facility. Setting up a manufacturing plant is crucial for Tesla to compete in the Indian market and also comply with the EV policy, which will enable Tesla to have serious tariff deductions on its imported as well as CKD range of cars. India’s latest EV policy requires EV manufacturers to commit a minimum of USD 500 million in local assembly and manufacturing, which in turn will benefit the respective EV manufacturers with lower import duties on both direct imports and CKDs—as low as 15% in most cases. For instance, VinFast, an emerging Vietnamese EV maker, has already committed USD 500 million investment to set up its assembly plant in Chennai, Tamil Nadu.

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