Tesla India Operations To Begin Within 3–4 Months; May Allocate 10,000 Cars in Phase 1 – Details

Tesla Inc. is gearing up for a grand entry into the Indian automotive market, with plans to launch its Battery Electric Vehicles (BEVs) before August 2025. In the initial phase, the US-based electric vehicle maker aims to import and sell 10,000 units across major cities, including Mumbai, Delhi, and Bengaluru, revealed sources aware of the company's plans. The move follows years of discussions between the company and the Indian government regarding investment, import duties, and local manufacturing.

“Tesla is planning to enter the Indian market with initial retail operations starting between July and August 2025, importing its models as Completely Built Units (CBUs) from its Berlin plant in Germany. In the first phase, it will be shipping 10,000 units of its certified models to the country,” revealed a source familiar with the company’s plans.

The source also stated that Tesla is open to increasing its allocations to India if the government permits it and further reduces duty rates. “As per the current EV policy, 8,000 units can be imported at a 15 percent duty, provided Tesla commits to manufacturing in India. However, if the government offers further relaxations in the number of units that can be imported and lowers import duties, Tesla may increase its shipments.”

An emailed questionnaire sent to Tesla global spokesperson remained unanswered until the time the story was published. 

“Tesla has been facing challenges in European and other important markets, so entering India could help them manage some of that decline. For India, Tesla’s entry could boost the growth of the EV ecosystem. Moreover, many aspirational Indian consumers, eager to experience top global brands, may find Tesla highly appealing,” said Puneet Gupta, Director, S&P Global Mobility. 

No Immediate Manufacturing Plans

However, the source clarified that Tesla has no plans to manufacture these models locally in the foreseeable future. “The company may outsource production to a third-party player while also exploring local sourcing and component manufacturing.”

Last week, media reports indicated that the Elon Musk -led EV maker has begun the process of certification and homologation for its Model Y and Model 3 in India. This is a crucial step before vehicles can be legally sold in the country.

It was also reported that Tesla India Motor & Energy Pvt. Ltd. has submitted two new applications for approval of its Model Y and Model 3. Homologation ensures that imported or locally manufactured vehicles meet Indian safety, emission, and roadworthiness standards as per the Central Motor Vehicle Rules.

Retail and Hiring Plans

Last month, reports suggested that Tesla India has already identified prime locations for its showrooms, securing spaces in Mumbai's Bandra Kurla Complex (BKC) and New Delhi's Aerocity area. These locations are expected to enhance Tesla's brand presence and cater to the growing interest in EVs among urban consumers.

Meanwhile, Tesla Inc. is hiring in India, a precursor to its plans to enter the market following Chief Executive Officer Elon Musk’s meeting with Prime Minister Narendra Modi in the US. The company has posted job openings for 13 roles, including customer-facing and back-end positions, according to listings on its LinkedIn page.