As seen in emails viewed by Bloomberg in a Friday report, Tesla has begun refunding early reservation holders in India, indicating that the U.S. automaker seems to be nearing its official debut in the country. Some Model 3 reservation holders in India initially paid deposits to purchase a Tesla as early as 2016, and they come due to the company having refreshed the vehicle’s design last year.

“We would like to return your reservation fee for the time being,” Tesla writes in the email. “When we finalize our offerings in India, we will reach out in the market again. We hope to see you back with us once we are ready to launch and deliver in your country.”

The launch is thought to be highly consequential for Tesla, as India is the world’s third-largest auto market, and thousands of people in the nation are employed by vehicle and component manufacturing facilities. However, years of talks between Tesla and the government about launching sales and potentially a factory there have hit a standstill multiple times, largely due to disagreements over the country’s high import duties.

Looks like Elon Musk and Indian PM Modi had another meeting recently.

Interesting line there about "potential for collaboration in the areas of technology and innovation." India did hint before that it would like a local Tesla plant.

Giga India? Megafactory India? https://t.co/jlyU2CoKF5

— TESLARATI (@Teslarati) April 18, 2025

READ MORE ON TESLA INDIA: India to hold EV import policy workshop in bid to attract Tesla, other EV makers: report

While many are speculating as to when exactly Tesla could launch vehicle sales in India, several other indicators have also suggested that the maker is getting close to doing so.

Last weekend, a Tesla Model Y with a privacy wrap was seen being tested in India, marking the second such sighting to take place in the past few weeks. The company also officially began the certification and homologation processes for the new versions of both the Model Y and Model 3 in India last month, and it has been hiring and picked out two sites for initial stores in the country, the first in Mumbai and a second in New Delhi.

A Bloomberg report in February also claimed that Tesla was aiming to sell vehicles in India around the third quarter of the year, though models being sold in the country had not yet been revealed at the time.

Tesla India partners with Tata Group on local supply chain: Rumor

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On Sunday, a privacy-wrapped Model Y was seen driving in India and was posted on Reddit, as Tesla prepares to debut vehicle sales in the country for the first time. The news comes a little over a month after Tesla began certifying the Model Y and Model 3 for sale in the country, and as the U.S. manufacturer gets ready to launch the nation’s first store in Mumbai.

The appearance of the refreshed Model Y comes just a few days after another recent sighting in the country, in which a wrapped unit was seen driving on the Mumbai Pune Express Way.

Credit: shameelck | Reddit

A Tesla Model Y has been spotted testing under a camo wrap in India on Mumbai's Pune Express Wayhttps://t.co/M082A3zoZE https://t.co/9UAHieBbqt

— TESLARATI (@Teslarati) April 15, 2025

READ MORE ON TESLA INDIA: Elon Musk, President Trump share interesting dialogue regarding Tesla Gigafactory India

Tesla’s vehicles can regularly be seen under privacy wraps such as this one ahead of their launch, often with the company’s vehicles before they’re officially unveiled. As such, many have speculated following the sighting that Tesla could either be preparing to launch the RWD variant launched in some markets in recent weeks, or the Performance version of the SUV, which is widely expected to debut sometime this year.

According to local reports, Tesla also signed a five-year lease on Mumbai store at the Bandra Kurla Complex, while a second store is expected to open near the New Delhi airport at Aerocity. Meanwhile, Tesla has also been hiring for the stores in recent months, along with holding a recruitment day in Mumbai last month.

Much of the delay on Tesla’s entry into India came from the country’s high import tariffs on vehicles and other products, while one of the government’s conditions for the country selling cars there was to utilize local suppliers. Last month, a rumor started circulating suggesting that Tesla was partnering with automotive company Tata Group for the local production of components such as castings, forgings, electronics, and more.

Tesla India: Thousands of cars set to hit Mumbai in coming months, claims report

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Tesla suppliers in India, including Tata Motors and key auto parts makers, saw sharp declines on Thursday after U.S. President Donald Trump unveiled plans to impose 25% tariffs on all imported cars and auto parts.

According to the Trump Administration, the U.S. President’s 25% tariffs will hit imported cars and light trucks coming into the United States by April 2, 2025. By May 3, 2025, Trump’s tariffs will extend to include auto parts. The decision sent shockwaves through the global auto industry, with Tesla CEO Elon Musk noting on X that the impact on the EV giant is “significant.”

Despite Musk’s words, many believe that Tesla will benefit from Trump’s tariffs. Although, it would probably adversely affect Tesla’s plans to enter the Indian market. Tesla has already started the certification process for two vehicles in India.

Following Trump’s tariff announcements, Tata Motors dropped 5%, while Sona Comstar, Tesla’s largest Indian supplier, fell over 4%, dragging the auto sector down 1.2% in India, the world’s third-largest auto market. Reuters reported that Tata Motors-owned Jaguar Land Rover (JLR), which exports luxury vehicles from the UK and Slovakia, relies heavily on the U.S. as a key market.

Other Indian suppliers felt the strain as well. Samvardhana Motherson, a major auto parts provider, slipped over 2%. Meanwhile, Tesla supplier Bharat Forgedipped by 0.4%. The U.S. accounts for 20% of Samvardhana’s revenue and 40% of Sona Comstar’s, with North America as its dominant region. The downturn echoed broader losses among global carmakers like Toyota, Hyundai, Stellantis, and Ford–all of which saw shares slide after the tariff news broke.

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Tesla India is reportedly partnering with Tata Group companies to establish a local supply chain and domestic parts production.

Tesla India has allegedly partnered with a few Tata Group companies, including Tata AutoComp, Tata Consultancy Services, Tata Technologies, and Tata Electronics. Tesla and the Tata Group companies are reportedly discussing the possibility of establishing facilities in India, near Tata Group’s manufacturing factories.

“Tesla is, in a way, readying the supplier base in India. We are very sure that once Tesla starts manufacturing here, Indian suppliers will benefit from sourcing opportunities,” an industry source told the Economic Times.

Tesla and Tata Group are supposedly discussing the possibility of developing and producing components like castings, forgings, electronics, and fabrication items. A few sources have also hinted that Tesla may intend to procure supplies from companies outside China and Taiwan, like wiring harnesses, electric motors, gearboxes, and castings.

Tesla wouldn’t be the first company to distance itself from Chinese suppliers. Earlier this year, for example, Panasonic Energy sought to reduce its reliance on Chinese sources, specifically for electric vehicles (EVs) produced in the United States.

Tesla may also be forming stronger ties within India for tax advantages and financial incentives. Last year, the Indian government was close to finalizing a new import tax policy that would encourage foreign EV automakers to invest in the country in exchange for specific tax advantages and incentives. The American EV manufacturer was supposedly set to invest $2 billion in a new plant and buy $15 billion worth of auto parts in India if the new policy would reduce Tesla’s import duties.

India’s strict rules on imported vehicles have always been a point of strain for Tesla’s entry into the country. It has a 60% import duty on vehicles below $40,000 and a 100% rate on vehicles above $40,000. U.S. President Donald Trump and his administration want India to completely eliminate or significantly reduce car import tariffs.

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In a report over the weekend citing industry sources, The Times of India said that Tesla has started the certification and homologation processes for the Model 3 and Model Y in the country, which are requirements for any automobile to be sold there. The news follows Tesla’s recent hiring spree in India, and reports saying that it has finalized a location for its first store in Mumbai, after years of delays have stopped the U.S. automaker from launching sales in the country.

Homologation tests are meant to ensure that vehicles meet roadworthiness requirements from the country’s Central Motor Vehicle Rules, along with testing things like safety and tailpipe emissions—though the later obviously won’t be a factor for Tesla’s electric vehicles (EVs).

The report says the company also submitted as many as seven other homologation applications for test vehicles in India, while an eighth was approved more recently. It’s not surprising that the Model 3 and Model Y would be the first to make it to the country, given that they’re produced at the company’s factory in Shanghai, China.

Tesla has started the process of certification and homologation for two models in India

This comes after Tesla launched hiring for sales and service in India and has landed on a few areas for its first showrooms pic.twitter.com/iYdEkcuRZb

— TESLARATI (@Teslarati) March 17, 2025

READ MORE ON TESLA INDIA: Elon Musk, President Trump share interesting dialogue regarding Tesla Gigafactory India

In addition to the Mumbai location, a report last month suggested that Tesla would be opening a second store in New Delhi, though neither of the sites are expected to include a service center at this time. The Mumbai store will be located at the Bandra Kurla Complex shopping center, while the New Delhi site is reportedly set to go in at the Aerocity Complex near the airport.

Tesla’s highly anticipated entry into the Indian automotive market, generally considered the third-largest auto market by domestic sales volume, also follows after years of disagreements about import costs. The automaker has been in discussion with India about launching auto sales in the country since 2019 or so, though Prime Minister Narendra Modi has repeatedly requested vehicle import duties as high as 100 percent.

Along with sales of its vehicles, Modi has regularly requested that Tesla launch a car factory in India, though Elon Musk has demanded that the country first lower import duties to allow the automaker to launch auto sales. It’s unclear as of yet if the launch of auto sales will reignite discussions over a potential factory, though recent discussions with Modi, Musk, and U.S. President Donald Trump suggest that it could be within the realm of possibility.

Tesla talks to top EV maker in India as it prepares to enter the market

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The hiring event was announced on social media platform X by Ricky Ip, the electric vehicle maker’s Regional Recruiting Manager for Greater China, South East Asia, South Korea, and India. 

Sales Recruitment Day details:

As per a poster shared by Tesla Recruiting Manager, the hiring event will be held this Saturday, March 8, 2025 from 11 a.m. to 5 p.m. The Sales Recruitment Day will be at Meeting Suite 104A in the Jio World Convention Center, Mumbai.

Tesla is looking to hire Sales Advisors in the hiring event. Attendees are expected to scan a QR code and submit a form for their application. Tesla advises applicants to arrive five minutes earlier for registration.

As noted by Tesla on its poster for the hiring event, Sales Advisors must have an eligible local driving license. They must also bring a hard copy of their CV for their interview, which will be conducted in group format, and in English.

Tesla first recruitment event in India.

Check this out! #teslaindia #teslarecruitment pic.twitter.com/QUeRgw8m6p

— Ricky Ip (@ipwaikrazy) March 5, 2025

Tesla India’s entry:

Recent reports have indicated that Tesla India has finalized the location of its first store in the country. As per The Times of India, Tesla’s first location in India is a 4,000-square-foot space in Mumbai’s Bandra Kurla Complex (BKC). Tesla India will be paying a premium for the space, as it has a monthly rent of Rs 35 lakh ($40,100). A second Tesla showroom is reportedly planned for Delhi’s Aerocity.

Tesla has not announced which vehicles will be initially sold in India. It would not be surprising, however, if Tesla India starts its push into the country with the Model 3 sedan and the Model Y crossover.

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Information about Tesla’s reported first store in the country was initially reported by The Times of India.

Tesla India store details:

Tesla India’s first store will reportedly be located on the ground floor of the BKC tower, the report noted. Tesla India will reportedly have a five-year lease on its BKC store, which will display Tesla’s electric vehicles. A second Tesla showroom is reportedly planned for Delhi’s Aerocity.

Tesla’s deal for its first India store came on the heels of CEO Elon Musk’s meeting with Indian Prime Minister Narendra Modi in the United States. Following Musk’s meeting with the official, Tesla opened several job listings in India, suggesting that a launch was imminent.

NEWS: Tesla Said to Have Finalised Mumbai’s BKC for Its First Showroom Ahead of India EV Market Entry

Tesla has finalised a deal to open its first
showroom in Mumbai's Bandra Kurla Complex, in what is probably the highest lease rent for a commercial space.

Property market… pic.twitter.com/Sp8yJVzke6

— Herbert Ong (@herbertong) March 3, 2025

Tariff Challenges:

While Tesla’s entry into India seems imminent, challenges still remain. This is, after all, not the first time that Tesla has attempted to enter the Indian market. The most notable attempt was back in 2022, though Tesla walked back from its plans to enter the country then.

India’s 110% import duty on imported vehicles also remains a hurdle. Such a system has been flagged by U.S. President Donald Trump. “Every country in the world takes advantage of us, and they do it with tariffs… It is impossible to sell a car, practically, in, as an example, India,” he said. Elon Musk has shared similar concerns.

Tesla India’s Potential:

India has a very young EV market, so Tesla has the potential to saturate the country with its mass market vehicles. As noted in a report from the Economic Times, Tesla’s vehicles might be premium priced, but the incentives from the local government could make the company’s EVs more attainable to everyday car buyers.

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“We welcome Tesla and all the other global companies who want to invest and manufacture in India,” commented Goyal.

After speaking about Tesla’s foray into India, the Commerce Minister noted that construction and vehicles were primary contributors to pollution in cities. He assured the public that the Indian government is committed to reducing pollution. Goyal said the government’s encouragement to use electric vehicles was a step towards a cleaner environment across the country.

Goyal is expected to meet with U.S. President Donald Trump soon to discuss bilateral trade deals between India and the United States.

“We will soon start discussing with the Trump administration of the US a strong, powerful economic engagement and a bilateral trade deal which will be the mother of all deals providing huge opportunities for Indians and Americans to work together and complement each other’s strengths in this very turbulent world,” India’s Commerce Minister said during the Invest Kerala Global Summit.

The Teslarati team would appreciate hearing from you. If you have any tips, contact me at maria@teslarati.com or via Twitter @Writer_01001101.

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For the past several years, Tesla and India have attempted to come to terms on an agreement that would see the EV maker bring its vehicles to the country permanently. There have been several sticking points in the negotiations, which have delayed Tesla’s plans.

Tesla has wanted to test demand by shipping vehicles from its Gigafactory Berlin plant in Germany to India.

This would not be an adequate way to assess whether India is an ideal market for Tesla because the country applies 100 percent import duties to imported vehicles, doubling the price of the car in question.

India has agreed to reduce or even eliminate the import duties for Tesla under one condition: it commits to building a factory in the country. This would essentially eliminate the need for the demand test, though.

This is where Tesla and India have been held up. However, recent discussions between Musk and Prime Minister Narendra Modi have resulted in Tesla initiating hiring efforts for Sales and Service advisors in India.

But things got interesting during an interview with President Trump and Musk yesterday, especially in regards to Tesla’s potential plans to build a Gigafactory in India.

Tesla CEO Elon Musk to meet with Indian PM once again – Here’s why

Musk and Trump both discussed the high import duties on imported vehicles in India, which Tesla will likely need to use a Gigafactory in the country to avoid.

President Trump seems more in tune with the idea of Tesla sending American vehicles to India and using a reciprocal tariff strategy to force the country to eliminate its duties.

The back-and-forth went like this:

Musk: The tariffs are like 100 percent import duty.

President Trump: The tariffs are so high —

Musk: Yeah.

President Trump: — they don’t want to — now, if he [Musk] built the factory in India, that’s okay, but that’s unfair to us. It’s very unfair. And I said, “you know what we do?” I told Prime Minister Modi yesterday — he was here. I said, “Here’s what you do. We’re going to do — be very fair with you.” They charge the highest tariffs in the world, just about.

Media: 36 percent?

President Trump: Oh, much, much higher.

Musk: It’s 100 percent on — auto imports are 100 percent.

President Trump: Yeah, that’s peanuts. So much higher. And — and others, too. I said, “Here’s what we’re going to do: reciprocal. Whatever you charge, I’m charging.”

The interesting bit about President Trump stating that Tesla building a factory in India is “unfair to us. It’s very unfair” seems to be a point of potential disagreement between the two.

It’s nothing that can’t be worked out, but it seems there could be a bargaining point between Musk, President Trump, and Modi.

Musk wants to get Tesla’s vehicles in India because it is such a large market and it could be a massive boost to the company’s annual delivery totals in the coming years. It has to be at the right price and at the right time.

Modi wants Tesla in India, too, but this will only happen if it can boost the economy. India has a very hellbent focus on domestic manufacturing through its “Make In India” campaign, which is why import duties are so high.

Trump wants Tesla to continue building vehicles in the U.S. to bolster his plans that would provide a resurgence to domestic manufacturing. He is fine with Tesla operating in India, but only if the U.S. sees a benefit, and not Tesla exclusively.

This will likely prolong what seemed to be an almost guaranteed deal between Tesla and India.

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Tesla India news resurfaced after the American EV maker posted 13 new jobs posts in Mumbai. Tesla has reportedly started talking with leaders in the Indian automotive market as it prepares to set up shop in the country. Tata Motors is one of the companies Tesla is conversing with, leading some to believe that the American automaker is hunting for talent from the Indian car maker.

“Tesla has also begun making calls to top executives at companies like Tata Motors, which is a leader in the EV manufacturing space in India,” noted a person familiar with the matter.

https://t.co/ZWuMEEk7L0

— TESLARATI (@Teslarati) February 18, 2025

Senior Tesla executive Prashanth Menon is expected to take a significant role in the company’s operations in India. He has reportedly returned to India. In 2021, Tesla appointed Menon its Director of Operations in India. However, in 2022, he was reassigned to the Netherlands when Tesla’s plans for India seemed to reach a roadblock.

Tesla is reportedly opening its first two stores in India. The company has allegedly decided to build a store in the Aerocity area near New Delhi International Airport. Another Tesla store is expected to open in Mumbai’s Bandra Kurla Complex shopping area.

Insiders commented that Tesla is also scouting sites for an EV manufacturing plant. Since Tesla has already established an office in Prune, most people speculate that the company will establish a factory in Maharashtra.

“The company has been keen on Maharashtra because it already has an office in Pune, and this would be a natural extension of its operations, considering it has a lot of existing suppliers in the state, too,” noted an insider.

The Teslarati team would appreciate hearing from you. If you have any tips, contact me at maria@teslarati.com or via Twitter @Writer_01001101.

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