Tesla Chief Elon Musk is likely to open up the company's retail business in India by April this year, starting with the import of cars from its plant in Berlin, CNBC-TV18 reported on Wednesday, quoting sources.
The company has identified showroom locations in Mumbai’s Bandra Kurla Complex (BKC) and Aerocity in New Delhi as part of its initial expansion plan. Tesla is also looking to introduce an electric vehicle priced under $25,000 (approximately ₹21 lakh) for the Indian market, the report mentioned.
While Tesla has not yet made a commitment to establishing an EV factory in India, it plans to raise component procurement from Indian OEM suppliers. According to CNBC-TV18, this procurement is likely to exceed $1 billion by 2025. Another report by Reuters confirmed that Tesla has sealed locations for two showrooms in New Delhi and Mumbai, moving closer to its much-awaited entry into the Indian automobile market.
Tesla has been searching for showroom locations in India since the latter half of last year, after it postponed its market entry in 2022. The fresh push follows Prime Minister Narendra Modi meeting Elon Musk in the United States last week to talk about a range of matters, such as technology, space, and mobility, reports Reuters.
For its New Delhi showroom, Tesla has leased a place in Aerocity, a high-end commercial area close to the city's international airport, with its luxury hotels, retail outlets, and corporate offices. In Mumbai, the company has selected a site in the BKC business and retail complex, close to the airport. Both stores are likely to be around 5,000 square feet (464.52 square meters) in area, Reuters said, quoting sources.
Though opening dates for the showrooms are yet to be confirmed, Tesla's first plan is to retail imported EVs in India instead of opening service centers right away, an insider says. The company will own and operate these showrooms directly.
Tesla has also advertised 13 mid-level jobs in India, including store and customer relationship managers, as signs of its market entry preparations.
Elon Musk has consistently faulted India's high import duty on EVs, which is almost 100%. The company has been pushing for lower duties time and again but has met with opposition from domestic car makers worried about the effect of Tesla's foray on their electric vehicle plans.
Simultaneously, United States President Donald Trump recently reprimanded India's high car tariffs. He and PM Modi, however, have agreed to negotiate a trade agreement to sort out tariff battles, which can open the doors for easier Tesla operations in India.
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