Tesla to Launch Imported EVs in India by April, Sourcing from Germany Instead of China

After years of anticipation, Tesla is finally set to make its debut in the Indian market. The American electric vehicle (EV) giant, spearheaded by Elon Musk, has faced numerous challenges in entering India, including regulatory hurdles and high import taxes. However, recent reports indicate that Tesla is poised 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 finalized locations for its first two showrooms in the country, with Delhi and Mumbai likely to be the initial launch cities. This development means that Indian consumers will soon have the opportunity to experience Tesla’s cutting-edge EVs without the need to import them independently.

#### Imported Teslas on the Way

Industry insiders reveal that Tesla’s initial fleet for India will primarily come from its Berlin Gigafactory, rather than China, due to the Indian Government’s concerns over Chinese imports. Tesla aims to price its first model in the country at under $25,000 (approximately ₹22 lakh), aligning with its global strategy to introduce affordable EVs and compete with rivals like China’s BYD.

However, there is a potential challenge: Tesla’s current entry-level car, the Model 3, has a base price of $40,000 (around ₹35 lakh), and 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 meet the price target. Given India’s price-sensitive market, maintaining competitive pricing will be crucial for Tesla’s success.

#### Showrooms and Hiring Underway

Tesla is not only planning to sell cars in India but is also establishing a presence in the country. 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 premium locations are ideal for Tesla’s brand positioning.

In addition, Tesla is actively hiring for various roles in India, including service technicians, customer engagement managers, and advisory positions. The company has reportedly posted over a dozen job openings for its Mumbai operations alone, indicating that Tesla is building a robust service network to support its vehicles in India.

#### A Smoother Road with Lower Import Duties?

One of Tesla’s significant roadblocks has been India’s steep import duties on foreign cars. However, the Union Budget 2025 has provided some relief by reducing the basic customs duty on imported vehicles costing above $40,000 from 125 percent to 70 percent. Although this rate remains high, it is a positive step towards making Tesla’s offerings more affordable.

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 highlighted India’s high import taxes, arguing that they hinder US carmakers’ competitiveness. If import duties are lowered further, it could make Tesla’s vehicles even more accessible to Indian consumers.

While Tesla has not yet committed to manufacturing EVs in India, it has plans to source over $1 billion (₹8,690 crore) worth of components from Indian suppliers this year. If demand grows, local production could be a logical next step.

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