What Happened to Tesla’s India Manufacturing Plan?
Tesla is finally entering the Indian market with the launch of its first showrooms in July 2025. The EV pioneer will debut in Mumbai and later expand to New Delhi, starting its long-awaited operations in the world’s third-largest automobile market.
The first set of Tesla Model Y rear-wheel drive EVs, made in China, has already reached Mumbai. This move marks a significant shift for Tesla as it tries to boost global sales, especially after a slowdown in Europe and China.
Made in China, Sold in India
Tesla’s entry starts with five Model Y SUVs imported from its Shanghai factory. Declared at ₹27.7 lakh, the cars attracted ₹21 lakh in import duties—consistent with India’s 70% tariff on fully-built EVs under $40,000.
These units are expected to be priced above $56,000 before taxes and insurance in India. That’s significantly higher than its US pricing, which starts at $37,490 post-tax credits.
The high price tag could become a major hurdle for Tesla in India, where value remains a key buying factor.
Showrooms, Warehouses, and Superchargers
Tesla’s first showroom will open in Mumbai by mid-July, followed by a second in New Delhi. These locations are set in upscale business districts to attract premium buyers.
Tesla has also imported Supercharger components, accessories, and parts from the US, China, and the Netherlands. Warehouse space has already been leased in Karnataka and Gurugram, indicating Tesla’s wider India roadmap.
Though Tesla hasn’t appointed a new India head post-Prashanth Menon’s exit, hiring is ramping up in retail, charging, and public policy roles.
Tata-Tesla Equation Faces a New Test
Earlier this year, The Economic Times reported that the Tata Group had become a global supplier to Tesla, delivering chips, circuit boards, and engineering solutions. This was seen as a key diversification move for Tesla amid its efforts to reduce dependence on China and Taiwan.
However, the entry of Made-in-China Teslas raises questions about the long-term scope of this partnership. Is this a stop-gap measure or a shift away from sourcing locally?
Tata Motors, a leader in India’s EV space, has an edge with models like the Nexon EV, Tiago EV, and the newly launched Harrier.ev. Tesla’s local retail debut could test Tata’s dominance and force a shake-up in the EV segment.
Will Tesla Manufacture in India?
Tesla’s decision to sell imported vehicles for now does not mean it won’t manufacture in India later. The February meeting between Elon Musk and Prime Minister Modi set the stage for this ongoing entry.
The Model Y shipments are likely just the beginning. Tesla seems serious about building a larger ecosystem in India — showrooms, service, and possibly manufacturing in the near future.
The premium segment in India is small, but Tesla’s global appeal and charging network could still attract affluent urban buyers looking for premium green mobility.
Final Word
Tesla’s launch in India has been a long time coming. While the first cars are Made-in-China, the real test will be how well Tesla adapts to India’s unique market needs — pricing, local sourcing, and competition from domestic EV giants like Tata Motors.
This is more than just a product launch. It’s a showdown that could shape India’s EV future.
