Tesla

Tesla Model YAfter finalizing its first ever showroom in Mumbai, Tesla has now applied for homologation of two cars – Model Y and Model 3
Tesla’s plans to enter India have been in the works for at least the last 3-4 years. The subsidiary entity, Tesla India Motors and Energy Private Limited, was registered in Bengaluru in 2021. Some of the Tesla models were spotted on road tests as well in India. However, a commercial launch was continually delayed.
Tesla Model Y and Model 3 to be homologated
Things are vastly different in 2025, as Tesla is finally moving towards the launch phase at an accelerated pace. The first showroom has been finalized, hirings are on and now, homologation applications for Model Y and Model 3 have been filed. Both of these have been spotted earlier on road tests in India. Homologation is one of the final steps before launching a new car in India. It applies to all cars, irrespective of whether they are manufactured in India, assembled in India or imported as CBUs.
Tesla Model 3
In India, the Automotive Research Association of India (ARAI) is the centralized agency for conducting homologation of vehicles. A wide variety of tests are performed to ensure that the vehicle meets the quality, safety, performance, emissions and regulatory requirements, as per Indian laws. Once a vehicle passes all the tests, a Type Approval Certificate (TAC) is issued. It is essentially a confirmation that the vehicle is roadworthy and meets all the mandated standards.
While Tesla was earlier planning to manufacture cars in India, the brand will initially focus on taking the CBU route. It will allow Tesla to get a better understanding of consumer sentiments and demand for its cars in India. Later, as the situation evolves across both domestic and international locations, Tesla can think about local manufacturing in India. As of now, Tesla has manufacturing units in the United States, China and Germany. Tesla is building a new manufacturing plant in Mexico, but completion can take a couple of years.
Tesla Autopilot
Import duty reduced for EVs
Tesla’s fast progress into the Indian market comes at a time when the government has plans to reduce import duties on specific EVs to 15%. Earlier, this tax was around 70% to 110%. It was a key reason that had resulted in delays in Tesla’s entry into India. Reports indicate that Tesla is pushing for an even more lenient tax system, wherein its EVs would attract zero tax. It remains to be seen if such demands will be accepted.
Tesla could benefit from other policy updates also such as the proposed changes to the domestic value addition (DVA) criteria. The government could also change the minimum value mandated for imported vehicles under the EV manufacturing scheme. Such changes could increase profit margins for Tesla cars sold in India.
But the red carpet being rolled out for specific EVs comes with some terms and conditions. For example, the lower import duties will be applicable only for OEMs that commit to Make In India and invest at least $500 million (approx. Rs 4,340 crore). Such commitments need to be fulfilled within 3 years. These measures will protect the interests of homegrown carmakers that have invested thousands of crores for building their EV portfolio. More

Tesla Model 3One of the leading electric car manufacturers, Tesla, has established a firm presence in many major markets like North America, Europe, UK, China and Japan. The company has been witnessing major setbacks with respect to sales in Europe, EFTA region (Norway, Switzerland, Liechtenstein and Iceland) and UK. Let’s take a closer look.
Tesla Car Sales Decline 45% In Europe
Tesla used to be a popular electric mobility solutions provider here. However, in recent times, Tesla has been witnessing a major sales decline in this region. The numbers are quite severe as Tesla sales halved YoY with 50.3% drop in Europe and a 45.2% drop in Europe + UK + EFTA regions in January 2025, as opposed to sales performance in January 2024.
This is a peculiar development as the demand for BEVs (Battery Electric Vehicles) is holding strong. In fact, BEV sales in Europe soared by 37% YoY. While electric cars, as a whole, are still popular and booming, European car buyers seem to be distancing themselves from Tesla brand, singularly.
Tesla Model 3
The downfall of Tesla sales in Europe is a combination of factors, but controversies revolving around Tesla CEO, Elon Musk, might be a major reason. His infamous salute, his support for Germany’s AfD Party and his political views, his support for a jailed activist in UK are some of the controversies which stirred debates and damaged his public image.
Repercussions of these activities, launch anticipation of new and updated Tesla Y and inventory shortages are some of the reasons attributed to Tesla’s sales decline in January 2025. As per ACEA, Tesla sold 9,945 units in January 2025, down from 18,161 units from January 2024. In major European nations like France, Tesla sales fell by 63% YoY and in Germany, it was 59.5%.
Chinese EV sales Soar
The drop in Tesla sales in Europe, UK and EFTA region is not for lack of demand for EVs or BEVs. BEV sales grew by 37% YoY across Europe, demonstrating that there are no negative sentiments for electric cars. ACEA revealed 1,24,341 electric cars were sold in Europe and 1,66,065 units in Europe + EFTA + UK with a 16.7% market share and 11.9% YoY growth.
Tesla Model 3
If we take SAIC Motors’ sales performance in this region in January 2025, the Chinese EV giant sold 22,994 units. New car sales in Europe saw a 2.6% decline YoY overall. The market share of Petrol and Diesel cars (combined) declined from 48.7% to 39.4%, followed by self-charging hybrid vehicles at 34.9%.
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Tesla Model 3 Pre-Facelift : Image For Reference OnlyAfter a prolonged on-off see-saw play, Elon Musk led Tesla Inc. seems to have set a firmer foot in India. The EV giant just commenced hiring for various job roles in India and seems to be a hint at the start of India operations. An official announcement from Tesla regarding India operations is not public yet.
Tesla Begins Hiring in India
American EV giant, Tesla Inc. has initiated the hiring process in India for as many as 13 roles. These developments came to light when Tesla posted openings for 13 positions on their LinkedIn page. These job roles posted by Tesla hint at a possible entry into India, which has emerged as a major automotive market in recent times.
Tesla Model 3 refreshed
There is less clarity as to what led Tesla towards this step, considering the company’s on-off interests towards Indian market. However, these developments fall in close proximity with the recent meeting of Indian Prime Minister Narendra Modi with Tesla CEO Elon Musk during his USA visit.
Tesla had expressed reservations on multiple occasions owing to rather high import duties set forth by Indian Government. Elon Musk himself has expressed his opinions on India’s high import duties, which doesn’t make it viable for a profitable business. Suggesting a reduction in import duties before making a significant commitment to Indian market.
Tesla Model 3 Refresh
However, Indian Government has revised its policies, reducing the import duties of cars priced above USD 40,000 (Rs 34.77 lakh) from 110% to 70%. This revision applies to EV makers that have pledged a local manufacturing presence with an investment of USD 500 million (Rs 4,150 Cr). Thus encouraging Tesla to set up a manufacturing presence in India.
What are the job openings?
These job openings that Tesla has put out for India include positions like Inside Sales Advisor, Customer Support Supervisor, Customer Support Specialist, Service Advisor, Order Operations Specialist, Service Manager, Tesla Advisor, Parts Advisor, Business Operations Analyst, Store manager and Service technician.
Tesla India Job Openings
The location for these positions can be seen as Mumbai in Maharashtra. More details about Tesla’s India operations are expected to be revealed soon. Tesla Model S and Model X are likely to be the imports, while Model 3 and Model Y are good candidates for local production. More

Tesla Model 3 on test in India. Image – Maitrey GogateTesla India EV Market Entry: Tax Incentives Fuelling The WayTesla’s expected entry into the Indian market marks a strategic move, manufacturing right-hand drive cars in Germany for export to India. This decision meets demand for electric vehicles (EVs) in right-hand drive markets. Aiming to expand its global presence, expected Tesla India operations could be a strong foothold in key emerging markets.India’s recent reduction in import taxes on select EVs offers a significant boost to Tesla’s entry. Fulfilling the condition necessitates a minimum $500 million investment and local production within three years. This move aims to attract foreign investment and foster domestic manufacturing in the EV sector.File photo from 2023. Elon Musk and Narendra ModiRoadmap to Tesla: India’s Factory Location OptionsWhile Tesla is allocating RHD cars for India, the specific models remain undisclosed. India’s provision allowing the import of up to 8,000 cars annually at reduced tax rates presents a promising opportunity for Tesla India’s EV Market entry.Selecting a factory location in Tamil Nadu, Maharashtra, or Gujarat is a crucial consideration for Tesla. The meticulous site selection process factors in logistical efficiency, skilled labor availability, and proximity to key markets among other decision making factors.Tesla Successful Models – Charging Infrastructure and Dealership ModelIn addition to vehicle production, Tesla prioritises charging infrastructure. By enhancing accessibility and reliability of charging stations, Tesla accelerates transition towards EVs, garnering wider acceptance even from other manufacturers.Tesla operates over 130 stores and galleries globally, spanning 34 countries. These outlets enable direct sales both online and in-person, diverging from traditional dealership models. With minimal marketing budget, Tesla relies on referral programs and word of mouth to bring customers to them. Stores, often in malls, serve as showrooms, educating customers about Tesla’s vehicles and brand. In states with strict dealership laws, Tesla employs mobile shipping-container stores and Airstream trailers to extend its reach, challenging conventional automotive sales practices.There’s Tesla, and There’s BYDGlobally, BYD boasts a diverse product portfolio, selling around 3,024,417 New Energy Vehicles (NEVs) in 2023. BYD India, beginning PV sales in 2021, sold 1,997 units by the end of 2022 and 2,038 units by the end of 2023. Its EV portfolio in India includes the newly launched BYD Seal, BYD ATTO 3, and the All-New e6.The government’s ambitious target of achieving a 30 percent EV market share by 2030 presents significant growth opportunities for manufacturers in India. With its global expertise in EV technology, Tesla stands well-positioned to capitalise on these opportunities. Elon Musk’s upcoming meeting with the Indian Prime Minister may seem ceremonial, as strategic decisions likely precede it. Expectations for this high-profile meeting include announcements of investment and policy discussions regarding Tesla’s expansion plans in India. More

Tesla Model 3Ahead of the full fledge manufacturing plans in India, Tesla has commenced production of cars for Indian market to be shipped in from GermanyIn a bid to make a name for itself in the world’s third largest automotive market, Tesla has commenced production of RHD vehicles. Unlike initial speculations suggesting shipments from China, a recent report suggests Tesla intends to ship RHD vehicles to India from its manufacturing facility in Germany.Production Of Tesla Cars For India CommencedWorld’s leading electric car maker, Tesla, is poised to enter the Indian automotive scene and establish a manufacturing presence here. Initially, there were setbacks to Tesla from Indian Government regarding the reduction in taxation for establishing a retail chain with units shipped into the country from China.After a brief pause, Tesla changed its approach towards Indian market. The growing economy and India climbing the ladder to become the world’s third-largest automotive market certainly helped in these regards. One of the nudges could be Indian Prime Minister Narendra Modi’s visit to USA and dialogues exchanged with Tesla founder, Elon Musk.Because India is a market for RHD vehicles, initial speculations suggested an imminent import from Tesla’s Shanghai plant. RHD Tesla cars are primarily manufactured here and are exported to all RHD markets like UK, Japan, Australia and others.File photo from 2023. Elon Musk and Narendra ModiRecent report suggests Tesla has commenced production of RHD vehicles for India in its Berlin plant in Germany. Considering the proximity between Germany and UK, there is a possibility that Berlin-made RHD Tesla cars might be sold in UK, replacing Shanghai-made units. As of now, there are no confirmations regarding which vehicles Tesla has on the cards for Indian markets.Tesla’s Berlin plant currently manufactures Model Y. Considering Indian road conditions and market perception, high-riding Tesla vehicles like Model Y could be a good fit.Company’s roadmapElectric vehicle juggernaut, Tesla, has pledged to establish manufacturing facilities in India. The company is about to finalise the location for the manufacturing facility. A team from Tesla is expected to fly into India and decide between three prospective locations – Tamil Nadu, Maharashtra and Gujarat.Tesla Model 3 refreshedAhead of that, Tesla is bringing vehicles manufactured in Germany to India via CBU route. These developments surfaced following the revised taxes by Indian Government on certain electric vehicles who’s manufacturers invest a minimum sum of USD 500 million and commence production within the next three years.As per the revised Indian policy, manufacturers can import up to 8,000 units into the country under the revised taxation policy at a lower tax rate. In the grand scheme of things, Tesla intends to increase its reliance on Indian providers for sourcing various components, making India a bigger sourcing hub.Source More

Image for illustration onlyWhile the 100% import duty for cars encourages local manufacturing, newer policies may adopt a more flexible approach towards EV importsLast year, India had emerged as the world’s third largest auto market, after China and the US. The Indian automotive space has huge unlocked potential, especially in the EV segment. Tesla is looking at opportunities in India, but has strongly opposed the high import duty taxation regime.Possibility of reduced 15% import duty for EVsTalks between Tesla and the government have been going on for several months. While the company is willing to invest around USD 2 billion in India, it wants concessions on the import duty. The current tax structure of 100% import duty for cars valued over USD 40,000 (approx. Rs 33 lakh) is way too high, according to Tesla. For cars below USD 40,000, the import duty is 60%.File photo from 2023. Elon Musk and Narendra ModiTesla wants to use the CBU route, at least for the initial period. Tesla has been negotiating that import duty be reduced to 15%. While the government has also taken a tough stand, it appears that a more flexible import policy for EVs could be announced soon. As per ET Auto report, the new policy will allow reduced import duty on the condition that the OEM commits investments for setting up local manufacturing.To safeguard its interest, the government is likely to ask for bank guarantees from the OEM. The relaxation in import duty will be valid for a period of 2-3 years. If the OEM fails to provide investment for local manufacturing after the relaxation period, the government will have the option to encash the bank guarantees. The exact amount of bank guarantees is yet to be finalized. Bank guarantees will ensure that only OEMs that are serious about long-term presence in India get the benefits of reduced import duties.Other global brands can also benefitWhile Tesla may be credited for nudging policymakers to adopt a more flexible approach, other leading global automotive brands can also benefit. A recent example is Ford that seems to be planning a re-entry in India. Ford had recently trademarked Mustang Mach-E electric compact crossover SUV in India. Just like Tesla, Ford may also benefit from the new taxation policy being drafted for EV imports.Bad news for local OEMs?As the full details of the new EV import policy is not available, it is difficult to determine the impact on homegrown automakers. The new policy is likely to have adequate provisions to ensure that locally manufactured EVs continue to offer more value to consumers. The Indian auto industry will be looking at a level-playing field and not a system that provides an unfair advantage to carmakers like Tesla.Companies like Mahindra and Tata Motors have made massive investments to boost their EV business. The new EV policy should incentivize local manufacturing, which will bring investments, create jobs and increase technical know-how. More clarity will emerge when one gets to read the details of the upcoming EV import policy.Source More

Tesla India Factory could soon be realityAs compared to 100% import duty on cars costing more than $40,000, government is thinking about reducing tax to just 15%Make in India has benefitted various sectors such as electronics manufacturing, pharmaceuticals, renewable energy, defence manufacturing, space, food processing, etc. The automobile and automobile components manufacturers have also benefited from Make in India initiative. Going forward, the government may implement a more flexible approach for specific auto segments such as electric vehicles.Tesla EVs could get cheaperTesla has been eying the Indian EV space since several years. However, due to the high import duty, plans for India have been moving at a slow pace. While there is no official confirmation from the government, it appears that a middle ground is being worked out.One of Tesla’s primary conditions was to test the Indian market, before committing to setting up a manufacturing unit in the country. For this, Tesla wanted the import duties to be scrapped. But that was not accepted, as the government was committed to its Make it India initiative.New report reveals that the Indian government is now working on a more inclusive electric vehicle policy. It will enable carmakers like Tesla to test the waters before committing huge investments. Tesla has already rented space in India, which can be deemed as a positive development in the company’s plan to start India operations.As per the new electric vehicle policy being framed, import duty on high-end electric cars could be reduced to just 15%. This will allow carmakers like Tesla to import fully-built (CBU) EVs into India. The reduction in import duty will also benefit other luxury players such as BMW, Mercedes, Audi and Volvo. It will result in significant reduction in prices of imported luxury electric vehicles.Provisions to support Make in IndiaWhile import taxes for premium EVs could be lowered, it will be applicable with a set of conditions. This will ensure that the new electric vehicle policy continues to support the Make in India initiative. Taxes will be lowered only if the company commits to some level of local manufacturing in the initial stages. The overall quantum of local manufacturing will have to be increased gradually. Carmakers will also be required to start sourcing components locally. They will need to provide bank guarantees that will cover for any defaults in their commitments.The bank guarantees will also be used to create an ecosystem for local suppliers. In the first two years, local sourcing will have to be around 20%. By the fourth year, local sourcing will need to be increased to around 40%. The new electric vehicle policy is currently in draft stages. So, these numbers may change in the final version.While lowering taxes for high-end EVs may have its benefits, the government should be watchful of players that may use this as an opportunity to flood the market with imported cars. A provision for anti-dumping duty can be made in the new EV policy. This will help create a level-playing field for local manufacturers, who have invested a great deal of money in building their EV portfolio.Source More