After years of discussions, tariff obstacles, and deliberate delays, Tesla’s eagerly anticipated India entry has finally begun with a showroom launch.
For the Indian market, Tesla is a brand with high aspirations in the electric transportation space. On July 15, 2025, the electric vehicle manufacturer will formally debut in the Indian market after a protracted trip. It is the outcome of market preparedness, policy changes, and strategic agreements. According to rumors, the corporation plans to introduce the Tesla Model Y to the Indian market. However, how did the business get to this point of its historic arrival in India? Let’s examine it in more detail.
Early Interest and Tariff Obstacles, 2016–2021
2016: Tesla showed significant interest in the market by beginning to take pre-orders for the Model 3. The EV manufacturer very recently, in 2025, issued refunds for reservations placed for the Model 3 in 2016.
2017: Elon Musk makes public reference to the tax-related difficulties, pointing out that a major obstacle to the debut of the Tesla brand in India is the 100% import taxes on premium cars.
2021: In January 2021, Tesla India Motors and Energy Private Limited, based in Bengaluru, is registered as an Indian company. In reality, Nitin Gadkari, the Union Minister for Road Transport and Highways, declared that Tesla will begin operations in India through the CBU in early 2021 rather than using a local manufacturing plant.
2022–2023: Plans to Build a $2 Billion Factory
2022: Musk blamed India’s’very high import taxes’ in January for making it harder for Tesla to enter the Indian market. While thoroughly testing the Model 3, the company also initiated the homologation procedure for four of its models in India.
2023: Tesla began employing locally in Mumbai for a total of 13 positions, marking the commencement of a physical presence. Plans for a $2 billion facility in Gujarat or Maharashtra had also been investigated by Tesla, but by the middle of 2023, negotiations had come to a standstill because of high tariffs and India’s insistence on local manufacturing arrangements, which Tesla wasn’t prepared to accept.
2024–2025: A Change in Policy Opens Doors
The SPMEPCI policy, which India announced in March 2024, reduces import duties on EV CBUs costing more than $35,000 to 15% provided that manufacturers invest at least Rs 4,150 crore ($500m) and start local production within three years. Additionally, manufacturers must add 25% domestic value within three years and 50% within five. For five years, the annual import cap is 8,000 units.
Early in 2025: To prepare for retail operations, Tesla increases hiring in Mumbai and Delhi for positions such as shop managers, sales, service executives, and autopilot operations.
Midway through 2025: Registration periods open and policy details are finalized; several international OEMs, with the exception of Tesla, openly express interest in the program.
July 2025: Mumbai Launch
A second facility in Delhi-NCR is planned shortly after Tesla’s first “experience centre” showroom in Mumbai’s Bandra Kurla Complex is ready to open. According to reports, Tesla plans to launch its retail business with the Model Y SUV. According to reports, the car’s recorded price, before tariffs, is around Rs 27.7 lakh. Import taxes for each car have increased by Rs 21 lakh, which might raise the total cost over Rs 50 lakh. It is anticipated that deliveries of the first group of Model Y cars would start in India.
