February 19, 2025 – Tesla is making steady progress in its plans to enter the Indian market, according to sources cited by the Economic Times of India. Following the recruitment of talent in the country, the electric vehicle giant has now begun searching for suitable land. Maharashtra is emerging as the top contender for Tesla’s first footprint in India.
“Tesla’s interest in Maharashtra stems from the fact that the company already has an office in Pune, which would serve as a natural extension for its operations, especially considering the presence of numerous existing suppliers in the region,” said one of the informed sources.
Chakan, a prominent industrial hub in Maharashtra, is home to several renowned automotive manufacturers including Mercedes-Benz, Tata Motors, Mahindra, Volvo, and Bajaj Auto, with factories established in the area.
The Maharashtra government is treading carefully, as the state has lost out on major investment projects in the past due to intense competition, such as the stalled Vedanta-Foxconn chip venture and the Tata-Airbus aircraft project.
Another source revealed that Tesla has initiated contact with the upper echelons of companies like Tata Motors, a leader in India’s electric vehicle manufacturing sector.
Elon Musk, the CEO of Tesla, has repeatedly discussed the company’s intentions to enter India. In 2021, Tesla had plans to open a store and office in Mumbai’s Bandra Kurla Complex. However, the plan did not materialize as the company failed to persuade the Indian government to reduce import tariffs.
Tesla had requested a reduction in taxes from 60% to 40% for fully assembled cars priced below $40,000 and had agreed to establish a manufacturing plant in India after assessing the market response. The Indian government, however, rejected the possibility of lower tariffs.
Subsequently, the Indian government introduced an updated electric vehicle policy offering tariff concessions to companies committing to invest at least $500 million in the country. Musk, however, canceled a planned visit to India in April 2024, citing “significant Tesla matters,” and instead traveled to China, where he had intended to announce investment plans during his Indian trip.
