Latest with Tesla India Story – Tesla has chosen to start sales in India using imported electric vehicles.
These units will be Model Y and possibly Model 3, both manufactured at Tesla’s Gigafactory Shanghai, which is Tesla’s primary export hub for global markets.
The first shipment of around 5 units of Model Y has already reached Indian shores for homologation and showroom display.
Note: On 2nd of June 2025, Union Heavy Industry Minister H. D. Kumaraswamy confirmed that Tesla is currently not interested in manufacturing EV in India.
💸 Why China?
- Faster route to enter India than setting up local manufacturing.
- Shanghai plant is highly efficient and already produces export-grade vehicles for Europe, Southeast Asia, and Australia.
- Tesla is testing market demand before committing to full-scale production in India.
🚧 But There’s a Catch: Import Duty
- India currently imposes ~70–100% import tax on fully built electric cars.
- That means:
- Model Y Long Range (~₹39L global price) may cost over ₹56–60 lakh in India.
- Tesla is negotiating with the Indian government to ease tariffs for EVs, especially if they commit to local manufacturing later.
📅 What’s Next?
| Timeline | Tesla Action Plan |
|---|---|
| July 2025 | First showroom opens in Mumbai (BKC) |
| Late 2025 | Delhi (Aerocity) showroom to follow |
| 2026–27 (TBC) | Decision on local assembly or Gigafactory |
| Ongoing | Talks on import duty relief |
🔍 Summary
- ✅ Tesla is importing China-made Model Y to India (starting July 2025).
- ❗ Expect premium pricing due to current tax structure.
- 🏗️ Tesla may consider local manufacturing if sales and policy support align.
Keep following Ask Auto Expert to know latest updates on all the auto related news.
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