Tesla is a brand of big expectations in the domain of electric mobility for the Indian market. After a long journey, the electric carmaker is making its formal entry to the Indian market on July 15, 2025. It is a result of strategic negotiations, policy shifts, and market preparation. Rumours have it that the company will be bringing the Tesla Model Y to the Indian market. But, how has the company reached this point of its landmark entry to the Indian shores? Let's delve deep into it.
2016-2021: Early Interest And Tariff Hurdles
2016: Tesla started accepting pre-orders for the Model 3 in the year 2016, indicating serious interest in the market. It was recently, in the year 2025 that the EV maker made the refunds for the bookings received for the Model 3 in 2016.
2017: Elon Musk publicly mentions the tax-based challenges, citing 100% import duties on luxury vehicles as a big hurdle to launching the Tesla brand in India.
2021: Tesla registers an entity in India - Tesla India Motors and Energy Private Limited, in Bengaluru, in January 2021. In fact, Union Minister for Road Transport and Highways - Nitin Gadkari, stated that Tesla would start operations in India in early 2021, via the CBU, without opting for a local assembly line.
2022-2023: Talks For Erecting $2 Billion Factory
2022: In January, Musk pointed fingers at India's 'very high import duties' further impeding Tesla's entry to the Indian market. The brand also kick-started the homologation process for four of its models in India, while extensively testing the Model 3.
2023: This year signalled a physical presence, as Tesla started hiring locally in Mumbai for a total of 13 roles. In addition, Tesla had explored plans for a $2 billion factory in Gujarat or Maharashtra, but by mid-2023, talks stalled due to high tariffs and India's push for local manufacturing-terms that Tesla wasn't ready to accept.
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2024-2025: Policy Shift Opens Door
March 2024: India announces the SPMEPCI policy, slashing import duties on EV CBUs priced above $35,000 to 15%, conditional on manufacturers investing at least Rs 4,150 crore ($500m) and commencing local production within 3 years, along with 25% domestic value addition within 3 years and 50% in 5 years. Annual import cap: 8,000 units for five years.
Early-2025: Tesla ramps up recruitment for store managers, sales, service executives, and autopilot operations roles in Mumbai and Delhi, laying the groundwork for retail operations.
Mid-2025: Policy details are finalised and registration windows open; multiple global OEMs, except Tesla, formally signal interest in the scheme.
July 2025: Launch In Mumbai
Tesla is now ready to inaugurate its first "experience centre" showroom in Mumbai's Bandra Kurla Complex and plans a second location in Delhi-NCR soon after. It is reported that Tesla will start its retail operations with the Model Y SUV. Reports also state that the documented price for the car is around Rs 27.7 lakh before duties. Each vehicle has attracted an additional Rs 21 lakh in import taxes, potentially pushing the final price north of Rs 50 lakh. Deliveries of the first batch of Model Y vehicles in India are expected to begin.