Tesla India Arrival
Tesla is poised to make its long-awaited entry into the Indian market, with reports suggesting the launch could happen as early as April. According to industry sources, the company is considering importing electric vehicles from its Berlin facility to kickstart sales in India. Tesla also aims to introduce a budget-friendly EV priced under $25,000 (around Rs. 21.7 lakh).
Setting Up Shop in India
Tesla has already zeroed in on locations for its company-owned showrooms, with the first outlets expected to open in Delhi’s Aerocity and Mumbai’s BKC. The company is also in the process of recruiting key personnel for its Mumbai operations, including store managers, service advisors, and technicians, signaling its commitment to establishing a strong local presence.
Changes in Import Tariffs & Trade Policies
India’s latest budget has revised customs duties on imported vehicles. The duty on EVs priced above $40,000 has been reduced from 100% to 70%, while the rate for cars costing up to $40,000 remains at 70%.
Reports indicate that India may further ease tariffs on electric vehicles in response to potential trade tensions with the United States. President Donald Trump recently signed an executive order introducing reciprocal tariffs on countries that impose high import duties on American goods. This policy is expected to be reviewed in April before taking effect.
Musk’s Meeting with PM Modi
Elon Musk met with Prime Minister Narendra Modi on February 13 for a detailed discussion covering topics like space, mobility, and technological advancements. Modi later highlighted India’s commitment to reforms and the philosophy of “Minimum Government, Maximum Governance” in a social media post.
Musk described the meeting as an honor but did not clarify whether it was in his capacity as Tesla’s CEO or on behalf of the US government. When asked, Trump stated he was unsure but acknowledged Musk’s potential business interests in India.
Tesla’s Investment & Sourcing Plans
While Tesla has yet to announce plans for an Indian manufacturing facility, sources reveal the company intends to source over $1 billion worth of components from Indian suppliers this year, with expectations for this figure to grow significantly in the coming months.
US-India Trade Talks on the Horizon
Musk is likely to visit India alongside President Trump during the upcoming Quad Summit. Ahead of this, US Commerce Secretary Howard Lutnick is scheduled to meet India’s Commerce Minister Piyush Goyal to discuss trade agreements, including potential changes to automobile tariffs.