Tesla is actively investigating options to establish a foothold in India. One strategy involves directly importing electric vehicles (EVs) from its Berlin factory. Reports suggest that Tesla aims to introduce a model priced under ₹21 lakh (approximately $25,000), which could shake up the local EV market. If priced competitively, this vehicle could rival popular models from Indian manufacturers.

In light of possible tariffs from the U.S., India has recently reduced customs duties on vehicles priced over $40,000 from 100% to 70%. This move could further facilitate Tesla's entry into the Indian market, especially as the government encourages foreign automakers to invest in local manufacturing.

Tesla has officially announced its first two showrooms in India, located in Aerocity, Delhi, and Bandra-Kurla Complex (BKC), Mumbai. Each showroom will cover around 5,000 square feet, although the opening dates remain undisclosed. Tesla has been searching for suitable showroom locations for over a year now.

The company is also considering setting up a manufacturing plant in India, with Maharashtra and Gujarat being potential sites. Reports indicate that Tesla may invest between $3 billion to $5 billion in this endeavor. Collaborations with local manufacturers, such as Tata Motors, are also on the table to enhance its operational footprint in India.