Tesla Unlikely to Import its E-Cars from China From Next year: Know The Reason Why

Tesla is set to commence its Indian operations by importing a limited number of its battery electric vehicles (EVs) from its Gigafactory in Shanghai, according to sources privy to the company’s plans. However, these Chinese-built products will only serve as an interim measure.

It has also been learnt from sources that the Elon Musk-led firm is expected to gradually transition to sourcing vehicles from its manufacturing hubs in Germany and the United States in the months ahead.

It is pertinent to note that Tesla's Fremont factory in the United States, which is its largest among all units, currently rolls out the Model S, Model 3, Model X, and Model Y. While its Shanghai facility produces the Model 3 and Model Y for the Asian markets, its Berlin facility builds the Model Y.

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“The decision to begin with limited batches from China stems largely from logistical ease and availability of models. Shipping in from Tesla’s Shanghai facility makes it cost-effective and responsive in the short term,” revealed a source requesting anonymity.

Sources indicate that Tesla’s move away from China as the primary export base is influenced by multiple factors. Growing geopolitical tensions between India and China are among the primary reasons.

“Tesla officials have been dissuaded by the government from importing in bulk from China due to geopolitical reasons. So, the company has also assured that it will eventually change its sourcing hub to other countries,” revealed the source, who didn't wish to be named.

While the company has not officially commented on the timeline for transitioning away from Chinese imports, insiders suggest that the shift to Germany and the U.S. could begin as early as the first half of 2026, depending on regulatory clearances and market response.

Industry analysts view this as a pragmatic step by Tesla, especially as it readies for competitive launches in countries with growing EV ambitions.

“While Tesla may initially import the Model Y from its Berlin Gigafactory, the anticipated US-India Free Trade Agreement could shift the sourcing strategy toward imports from the U.S. instead. In the longer term, Tesla’s decision to localize manufacturing in India will likely hinge on market demand and the policy landscape surrounding electric mobility in the country,” said Puneet Gupta, Director of India & ASEAN Auto Market at S&P Global.

Meanwhile, it has been reported in the media that Tesla is gearing up to open its s preparing to open its first showroom in India, located in Mumbai's Bandra Kurla Complex (BKC). The showroom, situated in the Maker Maxity building, is expected to be 4,000 square feet. It was also reported that Tesla is planning a second showroom in New Delhi's Aerocity area. The Mumbai showroom is reportedly leasing space at a high rate of Rs 900 per sq ft.