After years of speculation and hurdles, Tesla is finally making its official debut in the Indian market on July 15, 2025. This entry is a culmination of nearly a decade-long journey involving policy roadblocks, strategic negotiations, and persistent interest from the electric vehicle (EV) giant.
Tesla’s India story began in 2016, when it started accepting pre-orders for the Model 3, indicating early enthusiasm. However, high import duties—up to 100% on luxury cars—posed a major obstacle. In 2017, Elon Musk publicly highlighted these taxation issues. In 2021, Tesla formally registered an entity—Tesla India Motors and Energy Pvt Ltd—in Bengaluru. Although there were plans for operations via Completely Built Units (CBUs), local production wasn’t on the cards yet.
By 2022, discussions for a $2 billion manufacturing plant in Gujarat or Maharashtra began, but stalled due to India’s demand for local manufacturing. Meanwhile, Tesla began the homologation of four models and conducted rigorous testing of the Model 3. In 2023, the company ramped up hiring in Mumbai, signifying deeper engagement, though negotiations once again reached a deadlock.
A breakthrough arrived in March 2024 with the introduction of the SPMEPCI policy, which offered reduced import duties (15%) for EVs priced above $35,000, on the condition that companies invest at least ₹4,150 crore (~$500 million) and achieve 25% domestic value addition in 3 years, scaling up to 50% in 5 years. Tesla was slow to formally commit, but by early 2025, it began recruiting aggressively in Mumbai and Delhi for roles in sales, service, and autopilot operations.
Now in July 2025, Tesla is set to inaugurate its first experience centre in Mumbai’s Bandra Kurla Complex, with another planned in Delhi-NCR. The launch model is the Tesla Model Y, reportedly priced at around ₹27.7 lakh before duties. However, after levying import taxes of approximately ₹21 lakh, the final price may exceed ₹50 lakh. Deliveries of the first batch of Model Y units are expected to begin shortly, marking Tesla’s long-awaited footprint in the Indian automotive landscape.
