Tesla’s India-Entry Plans: Showrooms, Launch Details And More

Tesla has been aiming to enter the Indian market for the past year, but for one reason or another, their plans kept getting postponed. Recently, Tesla published several job openings for their dealerships in Mumbai and Delhi on social media platforms, which is a strong hint that the American electric car brand will be entering the market soon. According to a recent report, Tesla might not delay things any further, and we could see its launch in the next couple of months.

As per CNBC-TV18, Tesla is likely to officially launch in the Indian market by April this year. The American EV manufacturer currently plans to import cars to India, with the vehicles being shipped from Tesla’s Berlin plant for sale. The report also mentions that Tesla has plans to introduce an affordable electric vehicle in the Indian market soon.

Tesla needs an affordable EV in India as it will face competition from manufacturers like BYD, which have been present in the market for quite some time. The first product from Tesla for India is likely to be the Model Y, which is the crossover version of the Model 3. Tesla does not have any plans to set up a manufacturing facility in India yet.

This means the upcoming electric vehicles from Tesla will be CBUs, making them expensive. While the Indian government has reduced the basic customs duty (BCD) on imported cars costing over $40,000 from 100 percent to 70 percent, the effective BCD on cars costing up to $40,000 remains at 70 percent. While the government has reduced duties, the overall tariff rates still remain high. The report also suggests that India might further cut duties on electric cars due to the threat of reciprocal tariffs from the United States.

Tesla has been testing its Model 3 and Model Y for the Indian market. They even increased the ground clearance on the Model 3 sedan to make it more suitable for Indian roads. It remains to be seen whether Tesla will launch the sedan first or opt for an SUV-first strategy in India.

As mentioned above, Tesla has posted several job listings online for its Indian dealerships. Tesla will be setting up dealerships in BKC, Mumbai, and Aerocity, Delhi. They are already looking for professionals for roles such as store manager, service advisor, service technician, and many more.

Prime Minister Narendra Modi recently visited the United States and met Tesla CEO Elon Musk. After an hour-long meeting, the Prime Minister posted, “We discussed various issues, including those he is passionate about, such as space, mobility, technology, and innovation. I talked about India’s efforts toward reform and furthering Minimum Government, Maximum Governance.”

While Tesla has not made any announcements about setting up a manufacturing facility in India, it is possible that they might source components worth over a billion dollars from the country.

Elon Musk is also likely to accompany US President Donald Trump to India when he visits for the upcoming Quad Summit this year. Before this visit, both countries might discuss and sign a multi-sectoral trade deal, including agreements on automobile tariffs.