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Tesla’s India Market Entry: US-based electric vehicle manufacturer plans to begin selling its cars in three major cities—Mumbai, Delhi, and Bangalore
Tesla’s First EV Shipment to India: First EV shipment & what it means for Indian buyers everything you need to know
Tesla’s First EV Shipment to India: Tesla Inc. is preparing for its long-anticipated entry into India by shipping several thousand vehicles to a port near Mumbai in the coming months, marking its debut in the world’s most populous nation.
According to Bloomberg, which cited sources familiar with the matter, the US-based electric vehicle manufacturer plans to begin selling its cars in three major cities—Mumbai, Delhi, and Bangalore—by the third quarter of this year.
Tesla’s plans in India will be influenced by ongoing tariff discussions between the US and India, as the automaker awaits potential reductions in the country’s import tax, which is currently set at 110%.
Tesla revived its India strategy following a recent meeting between Elon Musk and Prime Minister Narendra Modi in Washington. The company has posted new job openings for showrooms and deliveries in the country, as reported.
The Indian government is expected to ease restrictions on electric vehicle imports as part of a broader trade agreement with the US. This could include increasing the import cap on EVs eligible for concessional tariffs from 8,000 to up to 50,000 units. Other measures under consideration include lowering import taxes and providing reduced import levies for certain vehicles, sources revealed.
Representatives from Tesla, the Indian Prime Minister’s office, and the Ministry of Commerce and Industry did not immediately respond to requests for comment.
A potential increase in the import quota and more favorable tariff policies could shape Tesla’s long-term strategy for one of the largest automobile markets in the world. Tesla’s global vehicle deliveries fell last year for the first time in over a decade, as BYD Co. gained traction in China and sales in Europe faltered.
In India, the arrival of Teslas could appeal to the growing affluent upper-middle-class population, but it may also pose a challenge to local manufacturers that employ thousands in domestic factories.
Tesla Pushes For Lower Taxes
India currently imposes a 110% effective tax on vehicles priced above $40,000. Tesla has previously requested the government to reduce these taxes and remove additional levies.
While the tariff for carmakers that set up manufacturing operations in India is considerably lower, Tesla’s initial business in the country is expected to rely on imports. There are no signs the company plans to manufacture locally, despite earlier discussions about establishing a final assembly unit in India.
One of the first steps in Tesla’s market entry will be launching an online booking portal. Prashanth Menon, a long-time Tesla executive, is heading the company’s local operations from an office in Pune, Maharashtra.
Musk’s meeting with Modi last week also highlighted the blurring of lines between Musk’s role as a business leader and his position as an adviser to US President Donald Trump.
After the meeting, Trump commented, “They met, and I assume he wants to do business in India. I would imagine he met possibly because, you know, he’s running a company.”
