
Tesla in India: Here’s the Full Story Behind the Long Wait
- by Pragativadi
- Jul 15, 2025
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After nearly a decade of anticipation, policy debates, and back-and-forth negotiations, Tesla has officially debuted in India.
The electric vehicle (EV) giant will inaugurate its first Indian “experience centre” showroom on July 15, 2025, at Mumbai’s Bandra Kurla Complex, with a second outlet expected in Delhi-NCR soon.
The Long Road to India
2016–2021: False Starts and Frustration
2016: Tesla began accepting pre-orders for the Model 3, fueling excitement across India.
2017: Elon Musk publicly blamed India’s 100% import duties as a major hurdle.
2021: Tesla registered its Indian entity in Bengaluru, sparking hope that operations would start soon. But the high import duties made local launch plans unsustainable.
2022–2023: Factory Plans and Stalemates
Tesla considered building a $2 billion plant in Gujarat or Maharashtra but refused to commit to local manufacturing without import duty relief.
Talks eventually stalled, even as Tesla hired staff in Mumbai and initiated homologation (road-worthiness) processes for several models.
2024 Policy Shift: Game Changer
In March 2024, India unveiled the SPMEPCI policy, dramatically reducing duties to 15% (from 100%) for EVs priced over $35,000—but only if:
The company invests at least Rs 4,150 crore ($500 million) in India.
Begins local production within 3 years.
Hits 25% local value addition in 3 years, 50% in 5.
Is limited to 8,000 CBU (Completely Built Unit) imports per year for 5 years.
What’s Launching Now?
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