After two pre -unsuccessful attempts, EV veteran Tesla is once again airways Abuz with the news of entering India. After Tesla CEO Elon Musk’s recent meeting with Prime Minister Narendra Modi, Tesla has allegedly started producing vehicles that intend to import into the Indian market, while a factory is possible There are also scouting for places, although neither musk nor any other source. Confirmed this.
In March 2024, the Government of India introduced a policy allowing EV manufacturers to import fully assembled electric vehicles (fully manufactured units or CBUs) at a customs duty rate to be applicable for a period of five years. of. Under this policy, a foreign EV manufacturer can import up to 40,000 units at a low custom duty rate of 15%, with a maximum import limit of 8,000 units per year. The deal works only when the manufacturer invests $ 500 million in India, including setting up a factory.
Although Tesla’s initial plans will include importing cars from their Berlin Plant, Tesla’s ability to enrich India’s EV supply chain lies a greater profit. Thus, Tesla is using India as a component stronghold, sourcing about $ 1 billion in auto components from India in 2023. Components such as plastic parts, casting, differential hubs, etc., have expressed their rejection on the Musk setting, which has expressed his rejection on the Musk Settings. A factory in India, it is more likely that India’s mine will continue for musk components, while the country’s five -year policy is also using the consumer interest of the country, while also given that India can Can Can Tesla’s work as an export-center for a low-cost vehicle yet manufactured as an export-center.
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However, the question arises as to why Musk has decided to accelerate Tesla’s long -standing India operations. Despite a favorable policy environment, which allowed Tesla to import cars on low custom duty, Musk’s visit to India was canceled at the last minute, there is no indication to resume dialogue earlier last year Was. Now, Tesla has listed 13 new posts in Delhi and Mumbai. What are the forces that may probably reduce the circumstances around the imminent arrival of Tesla in India?
Tesla’s sales fall globally
A major reason behind Musk’s turnbout when Indian EV market is looking at a big sales recession, not only in the US, which is its largest market, but also in countries like UK, Germany and France. . Sales in later two countries were particularly difficult. In January 2025, Tesla saw a decline in sales of 59.5 % in Germany and France also declined by 63.3 %. Earlier this month, Tesla’s shares declined by 11% and it appears that its other major markets outside the US, China, the largest market outside the US, saw a decline in sales in January 2025.
The reasons are manifold and are not limited to the politics of musk alone. EVS is facing a global recession in sales, and Tesla’s aging car line-up has not helped defeat its rivals. Partly, this is due to the fact that Tesla’s attention has been focused on re-shaping itself as a robotics and AI-operated company that makes cars.
Models such as cybercroke, which were initially sold in large quantities in the US, have not proved long -term durability. Cybetroke has faced major regulatory obstacles in markets such as UK, Japan and European Union regions, due to its size and size and failure to follow road safety standards. Together with Tesla cars and other reliability issues and together with growing competition from manufacturers such as Byd, Volkswagen and Hyundai, ensuring that Tesla no longer do so.
If Tesla really has to enter the market by the second quarter of this year, it will be at a time when its brand cash is an all -time low, match the brand with the brand and consumers boycott musk on their politics We do . Currently, India remains the market where Tesla’s Purasi effect is the strongest. Although there is no doubt that there will be a paint-up demand for the brand Tesla, it remains to be seen whether it will be important in the top market like India, where a base Tesla model 3 will also qualify as a luxury vehicle. .
Even the import is set to 15%with duty, an entry-level Tesla will cost almost in model 3 44.2 lakhs (East-Shorroom). Without the promise of local manufacturing, at a low import duty of 70%, Tesla will be very low in India despite a strong brand cash, and the cost of paint-up will be the cost of model 3 as a model 3 65 lakhs. Despite the brand cash, contestants like Hyundai, Kia, BMW, Audi and Mercedes-Benz can offer far more firmly manufactured products at that price point. And given the rules, Tesla’s self-driving technology will not serve as a profit on competition.
Strengthen the supply chain
The entire Tesla’s entry into India is a good thing for the entire ecosystem. Reports show that many suppliers are already scouting for places in Gujarat and Tamil Nadu. Given that the arrival of Tesla will attract the players more high-an outstanding component than Europe, which means that the supply chain for EVS will be stronger than ever. In any case, Musk should follow the policy framework that enables import imports only through local manufacturing and 50% local component sourcing promise.
Tesla may not have announced any plan to establish manufacturing, but it intends to embed itself more deeply in the Indian market and make it a more integral part of its global operation. If not through a lump sum sale, the EV adoption in India may accelerate the EV adoption in India.
Tesla model still in the pipeline
Let’s face it, this is not the first time Musk has announced something and has not been done through it. The launch of Cybetrack delayed significant, and the high anticipated second -generation Tesla Roadster has not yet made an appearance. Even last year’s cybercab unveiling is still some time due to production, and Mask’s claims to make a completely autonomous tech road legal in the US are reliable.
Even after Musk The current uses their influence in US administration to bulldes the regulatory obstacles, this will be a model 2-level before, sub. 21 lakh product production will be ready. While the average conception period for the Tesla model from conception to production has exceeded 3 years, Tesla has taken longer to bring out its products in recent times. Even Chinese battery giant and Tesla battery supplier CEO Robin Zeng said that when Musk was on the right path with a cybercab, it would be foolish to assume that it would be production-taiyar by 2026. For a model 2 vehicle, Tesla will need to be built on an unprecedented scale, and it is likely to take a lot of time.
Even current models such as model Y have seen a delay in widespread delivery due to the supply of series issues (in China) and delayed delivery in markets such as Europe.
Be able to do Tesla Work without a supercharger network?
This is a big question. Although Tesla’s job listing for India shows the intention of setting up a strong customer service network in India, India’s luxury EVS demand is remarkable for the third largest car market in the world. From January to September 2024, the long-standing market leader at the Mercedes-Benz India-Paljari Space sold out a total of 800 EV units out of only more than 14,000 cars.
Even though the demand for luxury EV in India is increasing, Tesla EV will be reduced considerably by 8000-units cap for sale. In addition, there is no talk of establishing a country-wide supercharger network-something that is a lifeline for all Tesla buyers and is a major reason behind Tesla’s global success. To really accelerate EV’s adoption in India, Tesla must help install “superactives” – its ownership brand of fast DC Chargers, at least on the busiest highway network in India.
Till then, Teslas will only serve as an ornamentation on Indian roads. While Tesla can give a very important boost to the EV market in India, perhaps even enhances the overall appeal of electric vehicles-the systemic issues that prevent EVS from selling high number will take longer.
