Tesla is preparing to launch its retail operations in India as early as April, potentially importing EVs from its Berlin factory. The company has finalized locations for its first showrooms in Delhi’s Aerocity and Mumbai’s Bandra Kurla Complex (BKC). These showrooms are expected to be around 5,000 square feet.
Tesla is also hiring for roles in Mumbai, including store managers and service technicians. While Tesla has not yet committed to manufacturing in India, the company may invest $3-5 billion to establish production facilities. They are considering Maharashtra and Gujarat as potential locations for a manufacturing hub. To benefit from lower import duties, Tesla would need to adhere to the Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI), which requires a minimum investment of ₹4,150 crore and increasing domestic value addition over time.
The company is also considering introducing a sub-$25,000 (₹21 lakh) electric car for the Indian market. Tesla may begin with the Model Y, importing it from Gigafactory Berlin due to geopolitical tensions with China. India has advised company against importing cars from China. Tesla also plans to source components worth over $1 billion from Indian suppliers in 2025.