TESLA SET TO ENTER INDIA, SALES TO BEGIN SOON AFTER ELON MUSK-PM MODI MEETING

Mumbai, 21st February 2025: Tesla, the American electric vehicle giant, is gearing up for its much-anticipated entry into the Indian market, with sales expected to commence in the coming months. This development follows a recent meeting between Tesla CEO Elon Musk and Prime Minister Narendra Modi in the United States, which has seemingly accelerated the company’s plans for India.

Tesla is reportedly preparing to ship several thousand vehicles to a port near Mumbai in the near future, marking its debut in the world’s most populous nation. The company plans to begin selling its cars in three major cities Mumbai, Delhi, and Bangalore by the third quarter of this year.

The Indian government has been working to facilitate Tesla’s entry by introducing policy changes. A new proposed EV policy will allow manufacturers to set up assembly facilities at existing plants, reducing the import duty to just 15% for companies that meet certain investment and turnover requirements. This move could potentially enable Tesla to offer vehicles starting from Rs 21 lakh onwards, competing with top models from domestic manufacturers like Mahindra and Tata Motors.

Tesla has already begun hiring for various positions in India, posting job openings for roles such as service technicians, customer engagement managers, and delivery operations specialists in Mumbai and Delhi. This hiring spree is seen as a clear indication of the company’s commitment to establishing a strong presence in the Indian market.

Elon Musk, who had previously expressed concerns about high import duties in India, seems to have found a more favorable environment following recent policy changes. The Indian government has reduced the basic customs duty on high-end cars priced above $40,000 from 110% to 70%, making the market more attractive for luxury EV makers like Tesla.

While Tesla is expected to initially import its vehicles from its Berlin plant, there are indications that the company may consider local manufacturing in the future. The government is reportedly prioritizing integrating India into Tesla’s global value chain rather than insisting on immediate local manufacturing commitments.

As India pushes towards its net-zero emissions target by 2070, the entry of Tesla is seen as a significant boost to the country’s growing electric vehicle market. With its innovative technology and global brand appeal, Tesla’s presence is expected to shake up the domestic EV segment and potentially accelerate the adoption of electric vehicles in India.