After nearly a decade of anticipation, Tesla is reportedly set to launch in India — with vehicles already en route and showrooms slated to open in July.
According to Bloomberg, Tesla has shipped a batch of Model Y rear-wheel drive vehicles from its Gigafactory in Shanghai to India. This marks a major turning point after years of stalled efforts, mostly due to India's steep import duties, which once reached 110%. A recent policy shift dropped that figure to 15% for automakers committing to local investments — a move that may have cleared the path for Tesla's long-awaited entry.
The timing is telling. EV sales in India have grown more than 20-fold since 2020, and while the clean automobiles still account for less than 3% of the market, that momentum signals real opportunity.
For Tesla, whose global sales are flagging under pressure from competitors including BYD and shifting public sentiment toward CEO Elon Musk, whose political activities turned some consumers away from the brand, operating in India could provide a much-needed jolt. As the Economic Times pointed out, Tesla needs India as much as India needs Tesla.
But the road ahead isn't smooth. Tesla's imported vehicles could be priced well above what Indian consumers are used to. The Model 3, for instance, is $42,490 in the United States. And while brand recognition is high, local EV competitors have made impressive strides in tech, performance, and affordability.
Even still, Tesla is making key moves: hosting hiring events in Mumbai, securing showroom space in Mumbai and Delhi, and getting the Model Y and Model 3 approved for Indian roads. Plans to roll out Superchargers and offer spare parts from the U.S., China, and the Netherlands suggest a broader ecosystem could follow.
"I think India is ready for more players, especially as EV penetration continues to grow. Tesla's entry might not be as disruptive as anticipated, but it would help create a better EV ecosystem," said Rajeev Chaba, CEO of JSW MG Motor India.
That ecosystem might one day include local manufacturing. Building a Gigafactory in India could slash costs significantly — at a price of $2-3 billion, much lower than facilities in the U.S. or Germany thanks to India's lower labor and land costs.
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As Chetan Maini, the Indian EV pioneer behind the Reva, told the Economic Times: "Tesla's entry will surely create a buzz and hype. It will create a moment but not an Apple moment." Still, if it accelerates EV adoption and sparks investment in clean infrastructure, it's a moment worth watching.
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