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Tesla Set to Begin Car Sales in India from April

In a significant move, Tesla—the world’s largest electric vehicle manufacturer—is reportedly poised to launch its car sales in India starting this April. However, rather than establishing a local manufacturing unit, the company will import vehicles manufactured at its Gigafactory in Berlin-Brandenburg, Germany.

Affordable EV on the Horizon

Sources indicate that Tesla is preparing to introduce its most affordable electric vehicle in the Indian market, with an estimated price tag of around USD 25,000 (approximately INR 21.71 lakh). While the specific model has yet to be confirmed, current import policies suggest that due to imposed tariffs, the effective price of this vehicle could rise to nearly INR 36 lakh. Presently, electric vehicles imported into India incur a basic customs duty of 75%. Nevertheless, a reduced duty of 15% could be applicable for vehicles priced above USD 35,000, provided that companies enter into a memorandum of understanding with the central government, commit to selling no more than 8,000 cars annually, and begin local manufacturing within five years. Discussions are underway to potentially revise these policies, with expectations that a new framework might be announced by the end of March.

Rumored Model 3 and Model Y Launch

In addition to the affordable EV, there are speculations that Tesla’s owner, Elon Musk, might also introduce the Model 3 and Model Y in India. These models currently retail internationally at prices exceeding USD 44,000, and it remains to be seen how Tesla will adapt their specifications for the Indian market.

Initial Retail Footprint and Strategic Investments

Tesla has reportedly secured locations for its first two showrooms in India. One showroom is set in the Aerocity area near New Delhi’s Indira Gandhi International Airport, while another location is being considered in Mumbai’s Bandra Kurla Complex—an established business hub adjacent to Chhatrapati Shivaji Maharaj International Airport. Additionally, insider reports suggest that instead of setting up a full-scale manufacturing facility, Tesla might procure parts worth up to INR 8,000 crore from India during this year.

This development could mark a pivotal step in Tesla’s strategy to penetrate the Indian market, balancing competitive pricing with evolving regulatory frameworks, and adapting to local market dynamics.