Tesla’s India Journey Stuck in Traffic: What’s Blocking the Fast Lane?

Tesla Inc., which had been planning a grand entry into the Indian market in the second half of this year, is now looking to roll out its products sometime next year. That’s primarily because, according to sources, the Elon Musk-led firm’s plans have been delayed by a combination of regulatory, operational, and strategic challenges.

According to sources familiar with the development, Tesla is reassessing its India timeline, which was initially expected to be finalized in the second half of 2025.

“While there’s no formal announcement from Tesla, internally the electric vehicle maker is not moving at the pace it initially intended,” said a source familiar with the plans. “The company has decided to set up showrooms in Delhi and Mumbai, but the product lineup for India still remains on the drawing board,” the person added.

Also Read: Tesla’s India Entry: When Will Tesla Cars Finally Hit Indian Roads? | Republic World

Another source told Republic Business that the delay in Tesla’s India foray is also due to factors such as uncertainty around import duty structures, pending government clarifications on the new EV policy, and unresolved negotiations over local sourcing commitments.

“Despite being non-committal about its manufacturing plans, Elon Musk was seeking a nominal import duty on Tesla’s cars In India. Since that wasn’t granted, the company is now adopting a wait-and-watch approach regarding its launch plans in India,” said the second source, requesting anonymity.

It may be recalled that the Indian government had earlier introduced a new EV policy offering incentives to global manufacturers that commit to local production. While the policy was seen as tailor-made for Tesla, the company had reportedly sought greater flexibility on timelines, model imports, and sourcing norms.

An emailed questionnaire sent to Tesla’s global spokesperson remained unanswered at the time of publishing.

“Amidst a volatile global landscape marked by a rare earth magnet crisis and significant supply chain disruption and Tesla less interest in manufacturing in India, the path for Tesla’s entry into India remain uncertain. Indian consumers may now have to wait until 2026 to drive Tesla on India roads, stated Puneet Gupta, Director of India & ASEAN Auto Market at S&P Global Mobility. et 

India foray plans remain on track 

Despite the indefinite postponement, Tesla is not shelving its plans to sell cars in India. “The company’s intent remains strong, but execution is taking longer than expected,” said one of the sources quoted above, adding, “India is a complex market, and Tesla is being cautious.”

Meanwhile, Tesla is believed to be scouting for dealer partners, global component suppliers, charging infrastructure collaborators, and local talent for key roles. However, it is understood that senior-level hiring, which was initially expected to begin in Q2 2025, has also been deferred until next year.