June 23, 2025 – After years of anticipation and planning, Tesla has officially made its foray into the Indian market. Bloomberg has reported that the electric vehicle giant has commenced shipping its first batch of cars from China to India, marking a significant milestone in its expansion into the South Asian country.
Tesla’s interest in the Indian market dates back nearly a decade. In 2015, during a meeting at Tesla’s Fremont factory in California, CEO Elon Musk and Indian Prime Minister Narendra Modi first discussed the possibility of Tesla establishing a presence in India. Over the years, both sides have hinted at Tesla’s entry into the market, but the company faced hurdles, primarily due to high import duties, which had previously stalled its progress.
Now, Tesla’s plans are finally taking shape. Bloomberg’s report indicates that the company has shipped its initial batch of Model Y rear-wheel-drive vehicles from China to India. Tesla is set to open its first showroom in India in July. Additionally, the company is actively preparing for its market entry by building a network of Superchargers, sourcing aftermarket parts and merchandise, and coordinating the supply of components from the United States, China, and the Netherlands.
The recent meeting between Musk and Modi in February this year appears to have been a catalyst for Tesla’s successful entry into India. It is speculated that the two leaders may have reached an agreement that facilitated Tesla’s market launch.
India boasts a vast automotive consumer market, yet electric vehicles accounted for a negligible share of total car sales in 2024.
Interestingly, the vehicles Tesla is sending to India are being produced at its Shanghai Gigafactory, rather than the Berlin Gigafactory, which was previously rumored to be the supplier. Reuters had earlier reported that the Berlin plant was planning to manufacture vehicles for the Indian market last year.
India has long maintained a stringent domestic manufacturing-first policy, imposing import duties as high as 110% on foreign automakers, which had severely restricted the entry of foreign car brands. However, the Indian government has now reduced the import tax to 15%, provided that companies invest in India and meet specific investment and sales targets.
