Tesla to start selling imported EVs in India by April, to import cars from Germany instead of China

After years of speculation and hurdles, Tesla finally seems ready to hit Indian roads. The American electric vehicle (EV) giant, led by Elon Musk, has long been eyeing the Indian market but has faced challenges ranging from regulatory issues to high import taxes. However, fresh reports suggest that the company is gearing up to introduce its EVs in India, with the first batch of imported models expected to arrive as early as April.

Adding to the excitement, Tesla has reportedly finalised locations for its first two showrooms in the country, with Delhi and Mumbai likely to be the launch cities. If all goes according to plan, Indian car buyers will soon get a chance to experience Tesla’s futuristic EVs without having to import them on their own.

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Imported Teslas on the way

Industry insiders reveal that Tesla’s initial fleet for India will primarily come from its Berlin Gigafactory, instead of China, given the Indian Government’s concerns over China. The EV company is said to be aiming for a price tag under $25,000 (around ₹22 lakh) for its first model in the country. This move aligns with Tesla’s global strategy of introducing affordable EVs to compete with rivals like China’s BYD.

However, there’s a catch — Tesla’s current entry-level car, the Model 3, has a base price of $40,000 (about ₹35 lakh). The Model Y is also priced above the $25,000 mark in international markets. This raises questions about whether Tesla will introduce a lower-spec variant for India or make other adjustments to bring the price down. Given India’s price-sensitive market, keeping costs in check will be crucial if Tesla wants to attract buyers in large numbers.

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Showrooms and hiring underway

Tesla isn’t just planning to sell cars — it’s also setting up shop in India. Reports indicate that the company has chosen prime locations for its first showrooms, with one expected to be in Delhi’s Aerocity and the other in Mumbai’s Bandra Kurla Complex (BKC). These locations are known for their premium appeal, making them ideal for Tesla’s brand positioning.

At the same time, Tesla is already hiring for various roles in India, with job listings popping up for service technicians, customer engagement managers, and advisory positions. The company has reportedly posted over a dozen job openings for its Mumbai operations alone. This suggests that Tesla is laying the groundwork for a strong service network to support its vehicles in India.

A smoother road with lower import duties?

One of Tesla’s biggest roadblocks has been India’s steep import duties on foreign cars. However, the Union Budget 2025 brought some relief, reducing the basic customs duty on imported vehicles costing above $40,000 from 125 per cent to 70 per cent. While this is still quite high, it’s a step in the right direction.

Further changes could be on the horizon. Reports suggest that the US government’s recent executive order imposing reciprocal tariffs on countries with high duties on American imports could influence India’s policies. Former US President Donald Trump has also pointed out India’s high import taxes, arguing that they make it difficult for US carmakers to compete. If import duties are lowered further, it could make Tesla’s offerings more affordable in the country.

For now, Tesla hasn’t committed to manufacturing EVs in India, but it has reportedly set plans to source over $1 billion (₹8,690 crore) worth of components from Indian suppliers this year. If demand picks up, local production could be the next logical step.

As April approaches, all eyes will be on Tesla’s India entry, which could mark the beginning of a new era for electric vehicles in the country.