As per a CNBC-TV18 report from February 19, sources familiar with the condition state that Musk is expected to launch retail operations in India in April. The company is also possibly looking to begin operations by importing electric cars from the Berlin plant.
Locations for a showroom have been identified at BKC in Mumbai, as well as in Aerocity in New Delhi. The first plan Tesla had in mind was to launch an electric vehicle priced at under $25,000 (about Rs 22 lakh) for the Indian market.
Although Tesla has not firmly committed to producing electric vehicles in India, it expects to ramp up sourcing of components from Indian OEM suppliers.
According to CNBC TV18, sourcing from the domestic ecosystem could cross the $1 billion mark by 2025. Meanwhile, the EV giant is also hoping furiously that import duties would fall further, which presently remain at 70 percent because of the reciprocal tariffs held by the Trump administration. There was a general hesitancy from Tesla entering India in view of high import duties. However, the Indian government reduced the customs duty for high-end cars above $40,000 from 110 percent to 70 percent.
The Commerce Ministry has called for an Inter-Ministerial Meeting to discuss trade ties with the USA, where the automobile sector tariffs are expected to be a key item on the agenda.
Tesla has also begun scouting for land plots in Maharashtra for a prospective manufacturing setup in India.
Moreover, CNBC-TV18 stated that Elon Musk is expected to accompany US President Trump during a possible visit to India later this year.
This announcement comes just days after Tesla commenced hiring in India with the posting of 13 job openings on LinkedIn. Developments earlier came in the wake of an earlier one-on-one meeting in the first week of May between Musk and Indian Prime Minister Narendra Modi, wherein both nations had decided to begin discussions on further strengthening bilateral trade.
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