Tesla Inc, the renowned electric vehicle (EV) manufacturer, is intensifying its efforts to enter the Indian market. A high-ranking delegation from Tesla recently held discussions with officials from the Union Commerce Ministry in New Delhi, exploring potential opportunities in India’s burgeoning EV market. With plans to ramp up production and diversify its global footprint, Tesla sees India as a crucial market for its ambitious expansion strategy.

The journey towards Tesla’s India entry began over two years ago when the company initially sought reduced import duties to introduce completely built units (CBU) cars for testing. However, domestic automakers opposed the move, advocating for Tesla to assemble cars in India using the completely knocked down (CKD) method. Under CKD operations, the duty on vehicle imports is significantly lower, at 10%, compared to the 70% duty imposed on imported cars exceeding $40,000.

Undeterred by the initial challenges, Tesla has renewed its interest in the Indian market. The company’s drive to produce 20 million electric cars annually by 2030, a remarkable increase from the 1.3 million units sold in 2022, necessitates the establishment of numerous Gigafactories worldwide. Moreover, Tesla aims to reduce its reliance on China for production and sales, making India an appealing prospect for diversification.

In a recent interview, Tesla CEO Elon Musk confirmed the company’s keen interest in establishing a presence in India. Musk’s statement underscores Tesla’s commitment to tapping into the country’s potential as a pivotal market for electric vehicles. Additionally, Tesla plans to introduce a more affordable EV model, specifically targeting markets in Asia and Latin America.

The potential entry of Tesla into India would not only provide consumers with access to cutting-edge EV technology but also stimulate the growth of the country’s electric vehicle ecosystem. It could pave the way for increased investments in charging infrastructure and encourage local manufacturers to embrace the transition to electric mobility.


As Tesla continues its dialogue with Indian authorities and explores avenues for local assembly and manufacturing, industry observers eagerly await further developments. The company’s market entry would not only contribute to India’s sustainable mobility goals but also reinforce Tesla’s position as a leading player in the global electric vehicle industry.