Tesla is set to kickstart its retail operations in India by April, with the company initially bringing in imported electric vehicles (EVs) from its Berlin factory, according to a report by CNBC-TV18.
The US-based EV giant has secured showroom spaces in Mumbai and New Delhi, taking a major step towards entering the world’s third-largest auto market after years of delays. Tesla had previously halted its India entry plans in 2022 but has since revived efforts, particularly after CEO Elon Musk met Prime Minister Narendra Modi in the US last week.
Tesla has reportedly finalized two key locations for its Indian retail presence:
• New Delhi: Aerocity, a prime commercial hub near Indira Gandhi International Airport, known for its luxury hotels, corporate offices, and retail outlets.
• Mumbai: Bandra Kurla Complex (BKC), a business and retail hotspot near the city’s airport.
Both Tesla showrooms are expected to be around 5,000 square feet in size, sources said. However, these locations will not include service centres, indicating that Tesla’s initial focus will be on selling imported vehicles rather than after-sales services.
Tesla is expected to introduce a sub-$25,000 (₹21 lakh) electric car tailored for the Indian market. However, the company has not yet committed to manufacturing EVs in India. Instead, it plans to increase component sourcing from Indian OEM suppliers, with projections indicating that sourcing from India could exceed $1 billion by 2025.
The company recently posted job openings for 13 mid-level roles in India, including store managers and customer relationship executives, signalling active recruitment efforts ahead of its official launch.
Tesla’s long-standing demand for India to lower import duties on EVs—which currently stand at nearly 100%—has been a major roadblock. While Musk has repeatedly pushed for tariff reductions, Indian automakers have resisted, fearing competition could disrupt the local EV market.
Last week, US President Donald Trump criticized India’s high import tariffs on cars but indicated a willingness to work with Modi to resolve trade disputes and reach an early trade agreement.
Although Tesla’s showroom launch is imminent, the timeline for selling vehicles remains unclear. The company is prioritizing sales of imported EVs while continuing to push for favourable policies before considering local manufacturing.
With demand for electric vehicles surging in India, Tesla’s entry is expected to intensify competition, challenging existing automakers like Tata Motors, Mahindra Electric, and MG Motor, all of whom are ramping up their own EV production.