Tesla’s India Entry Nears, Plans to Import EVs by 2024

By Tapesh

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Tesla’s Entry Into the Indian EV Market

Tesla is moving closer towards finalizing an agreement with the Indian government in order to enter the country’s electric vehicle (EV) market. According to a report by Bloomberg, the company is looking to secure an agreement with the Indian government which would enable Tesla to start shipping its electric cars to India starting from 2024. Additionally, the report claims that Tesla is planning to establish a local production facility in India by the year 2025.

State Consideration for Manufacturing Facility

It has been reported that Tesla is considering states like Gujarat, Maharashtra, and Tamil Nadu as potential locations for its first manufacturing facility in India. However, the final location for the manufacturing plant is yet to be confirmed. All three states have well-established ecosystems for electric vehicles and exports, making them attractive choices for Tesla.

Initial Investment and Local Sourcing

According to the report, Tesla is expected to commit an initial minimum investment of $2 billion in India. The company also intends to increase its purchasing of auto components from local manufacturers, with the value of these auto parts estimated to be as much as $15 billion. Tesla is also planning to locally produce some battery packs for its EVs in order to reduce production costs.

Potential Visit by CEO Elon Musk

The news of Tesla’s potential entry into the Indian market comes after CEO Elon Musk expressed plans for a significant investment in India, with intentions to visit the country in 2024. India’s Minister of Commerce and Industry, Piyush Goyal, visited Tesla’s plant in Fremont, California, and stated that the company is looking to almost double its purchases of auto parts from India to $1.9 billion in 2023, up from $1 billion in 2022.

Challenges and Government Relations

Tesla has faced challenges in importing its electric cars directly into India due to high import tariffs imposed by the government. The company has urged the Indian government to reduce these tariffs so that it can initially import its cars through the Completely Built Unit (CBU) route before setting up a local plant. However, the Indian government has consistently insisted that Tesla should first make an investment in India.


Tesla’s potential entry into the Indian EV market signifies a significant step towards expanding its global presence. With plans for local production and potential partnerships with Indian manufacturers, the company aims to establish a strong foothold in the rapidly growing Indian EV market, ultimately benefiting consumers and contributing to sustainable transportation.

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