Tesla Inc. is gearing up to enter the Indian market, with its first shipment of electric vehicles expected to arrive at a port near Mumbai in the coming months, according to sources familiar with the plans.
This marks a significant step for the US automaker as it seeks to establish a presence in the world’s most populous country.
The initial batch of Tesla vehicles will reportedly be sold in key metropolitan cities, including Mumbai, Delhi, and Bangalore, with sales expected to begin around the third quarter of the year. However, details about which models will be introduced and their country of origin—whether from Tesla’s factories in the US, China, or Germany—remain dependent on ongoing tariff negotiations between India and the US.
Currently, India imposes an effective import tax of 110% on high-end vehicles, a major hurdle that has previously delayed Tesla’s entry into the market. Talks are underway to potentially ease these restrictions, with one proposal suggesting an increase in the cap on EVs imported under a concessional tariff from 8,000 to as many as 50,000 vehicles.
Tesla’s latest push into India gained momentum following a meeting between CEO Elon Musk and Indian Prime Minister Narendra Modi in Washington. The meeting appears to have accelerated the automaker’s plans, with Tesla recently posting job openings in India to staff showrooms and oversee sales and deliveries.
While Tesla has expressed interest in local production in the past, its India operations are expected to be import-only for now. Despite previous discussions about setting up an assembly unit, there are no immediate signs that the company intends to manufacture vehicles domestically.
One of Tesla’s first steps in launching sales in India will be the introduction of an online booking platform. Leading the company’s local operations is Prashanth Menon, a longtime Tesla executive, who is currently overseeing the expansion from an office in Pune, Maharashtra.
