Tesla’s long-awaited entry into the Indian market was marked by several negotiations, policy changes, and corporate reshuffles.
Tesla’s long-awaited entry into the Indian market was marked by several negotiations, policy changes, and corporate reshuffles.
Tesla’s long-awaited entry into the Indian market might be finally over, with the company all set to launch its first showroom in Mumbai on July 15. It has been a rollercoaster of negotiations, policy changes, and corporate reshuffles. Here’s a detailed timeline of key events and how leadership changes at Tesla influenced its India strategy.
Tesla first expressed interest in India in 2016, with Elon Musk tweeting about “challenges” with local sourcing rules. At the time, India’s 100% import duty on luxury EVs made direct sales unviable. Tesla pushed for tax concessions, but the government insisted on local manufacturing.
During this period, Tesla’s leadership was stable, with Musk as CEO and key executives like JB Straubel (CTO) and Deepak Ahuja (CFO) driving global expansion. However, India remained on the backburner as Tesla focused on scaling production in the U.S. and China.
In 2020, Tesla registered a subsidiary in Bengaluru, signalling serious intent. By 2021, Indian officials engaged in talks with Tesla executives, including then-Senior Director of Asia-Pacific Operations, David Feinstein. The company sought lower import duties to test demand before committing to a factory.
However, Tesla faced internal turmoil—longtime executives like Jerome Guillen (President of Automotive) and CFO Zach Kirkhorn departed, slowing decision-making. Musk remained focused on Berlin and Texas Gigafactories, delaying India plans further.
In 2022, Tesla secured approval to homologate four models in India, hinting at an imminent launch. Reports suggested a potential $2 billion factory in Gujarat or Maharashtra. However, by mid-2023, Tesla paused negotiations, citing high tariffs and India’s preference for domestic manufacturing.
This period saw more executive shakeups—Tom Zhu (previously head of China operations) took over global production, while Musk’s acquisition of Twitter (now X) diverted his attention. Tesla’s India team was reportedly downsized, stalling progress.
Early 2024 brought renewed momentum. India announced a new EV policy, slashing import duties to 15% for manufacturers investing $500 million locally. Tesla executives, including new VP of Policy, Rohan Patel (a former Obama advisor), re-engaged with Indian officials.
Musk’s planned April 2024 meeting with PM Narendra Modi was postponed but rescheduled for mid-2024, signaling progress. Reports now suggest Tesla may begin imports in late 2024 while scouting factory locations.
With the launch of the new showroom, Tesla models will be now available in India, and the Model Y will be the first car to be retailed. Of course more models will come to the country including the Model 3, all of which will come as CBUs from China. Tesla does not plan to make any cars yet in India, will it do so in the future though? There is a possibility for sure, but we aren't holding our breath for it to happen soon.
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