Tesla India has finally landed, a crucial milestone in the country’s electricity vehicle market. Indian buyers will soon have access to one of the world’s most advanced electric vehicles following policy incentives and a strategic approach by Tesla.
Highlights:
- Tesla to enter India via direct-to-customer (D2C) sales model.
- Import duty on EVs reduced from 70% to 15% under new policy.
- Initial Tesla models to be imported from the U.S.
- Local manufacturing plan within 3 years to sustain lower costs.
- Tesla’s India team to meet PMO and key ministries in April 2025.
- Tesla’s stock has surged 83.65% in the past year, with a market cap of $1.12 trillion.
Tesla’s Strategy for India
Finally, after all the years of rumor, Tesla is finally entering the Indian market. The government has rolled out a new EV policy that reduces import charges on electric vehicles, offering Tesla a more viable entry strategy into the market.
Tesla’s direct-to-customer (D2C) approach means buyers will place orders online, and the company will ship cars directly from international manufacturing hubs until local production begins.
Expected Models & Pricing
Tesla is likely to launch its popular models:
| Model | Estimated Price (INR) |
|---|---|
| Model 3 | ₹55-60 lakh |
| Model Y | ₹65-70 lakh |
| Model S & X | ₹1 crore+ |
These prices include the revised import duties but remain on the premium side compared to local EV competitors.
New EV Policy: A Game Changer
The government’s Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI) has reduced import duties on electric cars from 70% to 15% for companies that invest in local production within three years. Tesla and other global EV players can import up to 8,000 units per year under this scheme.
What This Means for Indian Buyers
- Short-Term Impact: Higher prices due to initial imports.
- Long-Term Benefit: Local manufacturing to reduce costs and increase accessibility.
- Service & Charging Network: Tesla is expected to set up Supercharger stations in metro cities.
- Resale Value: EV resale markets are still evolving in India, making depreciation rates unpredictable.
Tesla’s Expansion Plans
- Possible factory in Maharashtra or Gujarat
- Expected to build a local supplier ecosystem over five years.
- Will compete with Mercedes EQ, BMW iX, and BYD in India’s luxury EV segment.
Tesla’s Market Performance
Tesla’s stock has seen a stunning 83.65% surge in the last year, its share price at $355.84. The company’s stock has jumped by 59.77% in the last six months alone. This strong market performance clearly indicates increasing investor confidence in Tesla’s global expansion plans, including its entry into India.
Big Step for EV industry
Tesla’s arrival in India is a big step for the country’s EV industry, but initial buyers will need to navigate premium pricing, charging infrastructure development, and resale uncertainties. If you’re planning to buy a Tesla, it might be wise to wait for local production to lower costs.
