Tesla

Rendered image. Credit – Backstage With MillionairesTesla is currently testing Model 3 and Model Y in India, the former is expected to launch sometime next year
The entry of Tesla into the Indian market is a highly discussed topic in the automotive industry. There have been lots of ifs and buts regarding Tesla’s future in India even after the company officially registered its local entity in the country as Tesla India Motors And Energy Private Limited earlier this year.
In the latest development, the American EV brand has completed homologation and four of its electric car models in India. In addition, the Tesla Supercharger unit has now been spotted in India, image of which has been shared on Twitter by Tesla Club India.
Tesla in India
The approval document certified that Tesla’s electric cars are roadworthy in the country. Although names of models homologated have not been revealed yet, the Twitter handle thinks that the four car models registered are variants of Model 3 and Model Y. Both these cars have been spotted testing on Indian roads on multiple occasions in recent months.
However, we believe that Tesla might have homologated all four products in its global lineup, the other two being Model S and Model X. Confirmation on this is expected from Tesla in the coming time. The American EV manufacturer has brought its CCS2 Supercharger Units to India which are awaiting installation at the moment.
Tesla Supercharger In India
Challenges Ahead
From the image, they appear to be V2 150kW Superchargers. Again, no confirmation could be sought at the moment. All said, gaining a foothold in the Indian car market won’t be easy considering electric vehicles still account for only 1 percent of the country’s annual car sales.
Sparse charging infrastructure is the key reason for this slow market although governments at both central and state levels along with various auto OEMs have been pushing for charging stations across countries. India’s tax regime is another speed breaker that discourages premium car brands from launching their EVs in India.
Reduction in Taxes
Earlier this year, Tesla CEO, Elon Musk tweeted that import duties in India are among the highest in the world and the nation treats clean energy vehicles the same as IC engine-powered cars, which isn’t consistent with its climate goals. Tesla has openly come out and sought additional subsidies from the Central government in India for its upcoming electric cars in India which will most likely be offered as Completely Built Units (CBUs) initially.
However, this has resulted in mixed reactions across the country. Recently, Union Minister of Road Transport and Highways Nitin Gadkari, at the India Today Conclave 2021, claimed that upon its launch in India, the Tesla car will cost Rs 35 lakh. While this wasn’t a formal announcement, it seems that the Government of India has had some discussions with the American EV manufacturer regarding this issue. More

Rendered image. Credit – Backstage With MillionairesTesla would enter the Indian auto market with the likely launch of Model 3 electric sedan slated later this year
Tesla has already established its entity in India with its India headquarters based in Bengaluru, Karnataka. It has also decided to set up shops in three different cities of the country- Mumbai, New Delhi and Bengaluru. The electric car manufacturer is currently scouting for a place where it could establish the company’s first assembly line.
While it has been reported that Karnataka, Maharashtra and Gujarat are all keen to welcome the American brand with open arms, the Gujarat Government has meanwhile offered 1000 acres of land to Tesla to build its local production facility. The company is presently scrutinizing all available options.
Tesla Playing Out All Options
According to a senior Gujarat government official, Tesla is undecided whether to opt for Gujarat or dig deep in Karnataka. The official quoted, “There is little or no social life in Gujarat, while it is not so in Bengaluru. They are trying to negotiate with both Gujarat and Karnataka governments.” The American EV brand officially set its foot in India on January 8, 2021, when it registered itself as Tesla India Motors and Energy Private Limited in Bengaluru.
The recent further discloses that the Maharashtra Government has also offered a piece of land in the state for the purpose of building its local plant. However, talks didn’t materialize ever since.
Tesla Model 3 Spied Testing In India
It has come to light that Tesla officials wanted a big web of charging stations in the Mumbai Metropolitan Region as well as near the Jawaharlal Nehru Port Trust, the port where the cars will land following imports. Tesla has partnered with 27 vendors in India out of which 20 are said to belong from Maharashtra.
Since their last interaction in 2020, Tesla hasn’t responded to the Maharashtra Government. Earlier, Karnataka Chief Minister had proclaimed that the carmaker will set up its factory and R&D facility in his state shortly after it registered itself with the Registrar of Companies with a Bengaluru address. However, the Karnataka CM later deleted that tweet that contained this information.
Gujarat Likely Host
Meanwhile, Gujarat has offered land both inside and outside Adani Ports and Special Economic Zone (APSEZ) in Mundra. APSEZ has an area of 8,400 hectares out of which around half is lying vacant. SEZs are designated duty-free enclaves where the Indian customs law does not apply. What also holds in favour of Gujarat is its new EV policy introduced a few days ago that not only offers subsidies on purchase of EVs but also provides setting up of necessary charging infrastructure.
Additionally, land in Gujarat is far cheaper than that in Karnataka. Reports claim that the Gujarat government is looking to build an electric vehicle hub in Mundra and, therefore, has also proposed to allocate land for ancillary units that would assist Tesla. This would include land for an EV battery manufacturing unit as well as other component manufacturers.
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File Photo
Tesla India has been registered as Tesla India Motors and Energy Private Ltd – as per Ministry of Corporate Affairs

Earlier this year, Karnataka CM, B S Yediyurappa had tweeted that Tesla will commence operations with an R&D unit in Bengaluru. He had announced this on twitter. But soon after, he had deleted the tweet. A State Govt document, accessed by Reuters points to the fact that Karnataka will also be the home to Tesla’s car manufacturing plant.
This update comes on the back of statements from Gujarat and Maharashtra – both stating that they have invited Tesla to setup their Indian manufacturing unit in their respective state. Tesla is yet to confirm the report.
Tesla in India
Entry of the US based electric vehicle maker Tesla, into the Indian automobile sector, is particularly noteworthy as both the Central and State Governments are vying for higher adoption of green vehicle technology to conserve energy and preserve the environment.
Elon Musk’s Tesla Inc. has set up a subsidiary in Bengaluru with plans to introduce their range of electric cars in India later this year. The R&D Center is at Lavelle Road in Bengaluru and marks the company’s entry into the country with a paid up capital of Rs.1 lakh and authorized capital of Rs.15 lakhs.
Karnataka CM tweet which was deleted soon after it was posted
With plans to launch a range of electric vehicles in India in 2021, Tesla has named Vaibhav Taneja, Venkatrangam Sreeram and David Jon Feinstein as its three directors. Plans are afoot to launch the new Tesla Model 3 in India for a start, with local assembly and manufacturing to commence later.
First Tesla Car In India
It is rumoured that Tesla Model 3 will be the first to launch in India as it is the most affordable Tesla product. The all electric sedan will be brought in as a CBU initially. It will attract a 100 percent import duty unless the Government of India offers any concessions to Tesla so as to give electric vehicle entry a push. Standard range of 423 kms on a single charge.
South Of India Becoming EV Hub
South of India and more specifically Bengaluru is a hub of automotive engineering with centres of Daimler, Bosch, Continental, Fiat Chrysler. Electric vehicle segment is also seeing increased participation with mobility startups like Ola, Uber, Bounce and Vogo planning to introduce more electric vehicles into their fleets.
Ola is also keen on manufacturing electric vehicles with a new EV plant in Tamil Nadu. Ola will setup the world’s largest electric scooter manufacturing plant in Tamil Nadu – for the same they have signed an MoU of Rs 2,400 crores.
Ather Energy has also gone ahead with their plans. Production is now shifted to Hosur, Tamil Nadu from where the company aims to produce around 1 lakh units of electric two wheelers per annum.
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Tesla Model 2 render. Credit – JULIEN JODRY/TWITTER
This compact electric car is likely to be positioned as an entry-level product from Tesla and will be based on the same platform as Model 3

Tesla has reached a point in its business endeavours that it could very well project itself as a mass manufacturing mainstream automaker in the future. While its Model 3 sedan is currently the most popular electric car worldwide, its latest offering- Model Y, is set to overhaul the former to become even more popular.
This could be further established by the company developing an affordable electric car worth $25,000 (equivalent to INR 18.22 lakh). Latest reports surfaced on the internet suggest that Tesla might soon commence testing trials for the upcoming compact car which has been labeled as a ‘Future Product’ in its Q4 FY 2020 Update Letter.
Tesla Compact EV
The company, however, has not yet officially confirmed the development of the said vehicle. As per a report published in a Chinese media outlet, Tesla is expected to begin road tests for this upcoming EV in the coming months, most probably in the latter half of this year in China. The report further mentions that this car could make an appearance at the Guangzhou Auto Show later this year.
Specifications about this upcoming compact EV are still in the dark and are expected to be revealed in months to come. However, it has been revealed that it will be designed by locally hired talent in China. This would allow the EV giant to develop this model in a budget.
2021 Tesla Model S
In all likelihood, Tesla would target the working class as the primary consumer base for this product hence it requires to be cost-effective. The EV is expected to offer modest performance and a range of about 350-450 km on a single charge.
Design-wise, this EV is likely to be positioned as a compact hatchback which is based on the platform as Model 3. This should provide the upcoming EV with ample space inside the cabin. Furthermore, reports mention that the car could be produced at Gigafactory in Shanghai although exact details as to the exact area where its assembly line will be set up are still unknown.
Tesla In India
This development comes in the backdrop of Tesla looking to expand its global footprints by setting foot in emerging markets like India. Last month, the company officially announced that it would enter the Indian market with its headquarter set up in Bangalore.
While its manufacturing facility could be established in either of the two major ports of Kandla and Mundra in the state of Gujarat. The first product in India will be the Model 3 electric sedan which is expected to be followed by the launch of Model Y electric crossover. In 2020, Telsa manufactured and delivered about 5 lakh electric cars globally.
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