Tesla is on track to make its much-anticipated entry into the Indian market, with reports suggesting a potential debut as early as April this year. The company is actively exploring multiple strategies, including setting up a manufacturing facility and directly importing electric vehicles. Additionally, Tesla has confirmed the locations for its first two showrooms in the country.

Tesla’s Manufacturing Plans and Direct Import Strategy

While discussions are ongoing regarding acquiring land for a manufacturing plant, Tesla is also considering the direct import of vehicles from its Berlin factory. According to a report, the company is evaluating the launch of a budget-friendly electric vehicle priced under Rs 21 lakh ($25,000). If Tesla successfully introduces this model at an aggressive price point, it could significantly disrupt the Indian EV market and compete with flagship models from domestic automakers.

India’s Tariff Revisions and Tesla’s Potential Benefits

In response to possible reciprocal tariffs from the U.S., the Indian government may further lower the basic customs duty (BCD) on vehicles priced above $40,000. Recently, the customs tariff on such vehicles was reduced from 100 per cent to 70 per cent. However, there has been no change in the duty structure for vehicles priced under $40,000. This revision could play a crucial role in Tesla’s pricing strategy for the Indian market.

Tesla’s First Showrooms in India: Delhi and Mumbai

According to reports, the Delhi showroom will be situated in Aerocity, while the Mumbai outlet will be located in the Bandra-Kurla Complex (BKC). Reports also indicate that both showrooms will span approximately 5,000 square feet. Although Tesla has not disclosed the official opening dates, the company has been actively searching for ideal retail locations for over a year, according to Reuters.

Potential Manufacturing Facility and Indian Collaboration

Tesla is evaluating options for setting up a manufacturing facility in India, with Maharashtra and Gujarat emerging as top contenders. According to a report by India Today, the company is expected to invest between $3 billion and $5 billion in the project. Additionally, Tesla is exploring potential partnerships with Indian automobile manufacturers, with Tata Motors being speculated as a possible collaborator.With a combination of direct imports, potential local manufacturing, and new retail showrooms, Tesla’s entry into India is set to redefine the country’s electric vehicle landscape. All eyes are now on the official launch, expected in the coming months.