Elon Musk’s Tesla In India: Location, Price, and Partnership
Updated: Feb 21
Key Highlights
Elon Musk's Tesla may start selling imported EVs in April 2025.
Tesla has finalized Delhi and Maharashtra as its preferred locations for selling across India.
Price may start from ₹21.67 lakhs.
Elon Musk’s Tesla is finally entering the Indian market. The EV automobile company had its sights set on the nation for a long time, and the development comes after Donald Trump & Narendra Modi held bilateral talks in the US. Tesla will soon start selling imported EVs. It could, however, take some time to set up a manufacturing plant.
Elon Musk held a few meetings with the Indian government in the past to discuss possibilities. With this report on the table, his efforts could finally be paying off. Interestingly, the automobile company has already finalized locations and is in talks with an Indian car company for a partnership.
Possible Locations and Price of Tesla in India
Elon Musk posts a lot on X but has not shed light on details about venturing into the Indian market. There is also little information from Tesla. What reports circulating on the Internet have stated is that Tesla could start selling its imported EVs from April this year, that is 2025. That will be followed by setting up a manufacturing plant maximum by year-end.
Two locations that Tesla has pinned are Aerocity in Delhi and Bandra Kurla Complex (BKC) in Mumbai. The EV car maker has, for now, opened up multiple job vacancies on LinkedIn specifically for the Mumbai region. According to Economic Times, which has mentioned CNBC-TV18 as its source, both are potential locations for sales across India.
EV models by Elon Musk’s Tesla could be priced at around $25,000. This roughly translates to over ₹21.67 Lakh based on the current currency exchange rate.
Also Read: Nexon 2025 by Tata Motors.
Maharashtra is turning out to be a stronger candidate because it already hosts several automobile manufacturers. This includes the likes of Mercedes-Benz, Mahindra & Mahindra, and Volkswagen.
Irrespective of the location Tesla chooses, it is now becoming certain that the company is coming to India, that is Bharat, where it will review the response before scaling up its manufacturing attempts.
The EV automobile sector is growing with a strong prediction. According to IBEF, electric vehicle sales in India in 2023 increased by 49.25% to reach 1.52 million units. Then, in May 2024, India saw a rise of 20.88% in electric vehicle sales with units reaching 1.39 million.
There are many advantages that India offers. This includes robust demand, opportunities, policy support, and investments. Indian automobile companies that are already seeing positive responses are Tata Motors and Ather Energy. It is time for Tesla to grab a portion of the market share.
Tesla Looking for a Partner
Tesla is a big name that would possibly sell itself. But, the Indian market can be complicated to handle and therefore, the California-based automobile company is on the lookout for a reliable partner. According to a report by Financial Express, Tesla may enter into a partnership with Tata Motors. Representatives from both companies are in talks and are reportedly working out a deal.
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Not a lot has been shared in this regard but if the report is true, then Tesla will indeed gain a partnership with one of the prominent automobile companies in the Indian market. Tata Motors is the most reputed brand in the nation and it gained a market share of more than 62% in 2024, per JMK Research. The company is followed by MG Motors with a market share of 22%.
Anticipation of the Tesla-Tata Motors partnership has brought Tata Motors' share price under the limelight. They are currently trading at ₹690.35/-, which is up by 1.4% over the past 24 hours. While the company is far from its 52-week high of ₹1,179.05/-, it may recover returns if Tesla and Tata Motors go through the partnership deal.
Donald Trump’s Reaction to Tesla Entering India
Donald Trump, the US President, has reacted to Tesla’s entry into the Indian market. He has said that it’s okay if Tesla builds a factory in India but it’s unfair to the US. This is based on tariffs that India levies on the US.
Both Trump and Musk have said that import duty on completely built units ranges between 70-100%, adding that that’s a concern for them. The Times of India has also published a part of his conversation with the media.
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