Tesla is reportedly close to launching vehicle sales in India after years of consideration, according to a Bloomberg News report. The electric vehicle maker is preparing to open its first showroom in Mumbai and could begin deliveries as early as August.
Just hours after Bloomberg’s story broke, Tesla created an official account for its Indian operations on Elon Musk’s social media platform X. The new account’s first post featured an illustration of the Mumbai skyline with the caption: “Coming soon.”
The move comes as Tesla expands into new markets to offset slowing demand in existing ones, where its aging EV lineup has begun to lose momentum. Earlier this year, the company entered Saudi Arabia, signaling a growing focus on international growth. The brand has had considerable success in neighboring United Arab Emirates, where most ride-hailing apps offer electric vehicles.
India presents unique challenges—chief among them, pricing. Because Tesla will initially export fully built vehicles, they’ll be subject to a 70% import duty, according to Reuters. While the company has previously discussed plans to build a factory in India, the talks have yet to result in a formal agreement.
Back in 2023, a Tesla delegation met with Indian officials to discuss the potential for local sourcing and incentives. However, the conversations didn’t progress to concrete commitments. “The automaker will eventually look to establish a domestic factory to tap India’s vast consumer market, [but] it hasn’t yet presented a formal plan,” said people familiar with the matter, who asked not to be named due to the sensitivity of the talks.
During more recent meetings, Tesla executives reiterated concerns over India’s steep tariffs on imported vehicles. However, “the government doesn’t plan to change its tax regime to accommodate one automaker,” one person said.
Despite the hurdles, Tesla appears ready to test the waters in one of the world’s largest emerging EV markets.
Pump Radar
Stock Alerts