— Sawyer Merritt (@SawyerMerritt) February 18, 2025 The Indian government has been keen on attracting global EV manufacturers to boost the country’s electric vehicle ecosystem. As part of this effort, a new EV policy has been introduced to encourage companies like Tesla to invest in local manufacturing while allowing them to import a limited number of vehicles at lower tariffs. The policy aims to make India a competitive market for premium electric vehicle brands while ensuring that local production takes off in the long run. The key highlights of this policy include reducing import duties on premium EVs from 110% to 15% for vehicles priced above $35,000, mandating a minimum investment of ₹4,150 crore towards local operations, capping imports at 8,000 units per year under reduced tariffs, and requiring companies to establish local production facilities within three years, with at least 50% local value addition by the fifth year. These measures are designed to ensure that Tesla’s presence in India goes beyond imports and extends to meaningful participation in the country’s EV manufacturing sector. Tesla’s initial offerings in India are expected to include some of its most popular models. The first car likely to be introduced is the Tesla Model Y, which will be imported from the company’s Berlin gigafactory. Other models expected to enter the Indian market include the Tesla Cybertruck, Model 2, Model 3, Model S, and Model X. These vehicles, while appealing to high-end customers and EV enthusiasts, will be priced at a premium due to import costs. Estimates suggest that the Cybertruck may be priced around ₹70 lakh, the Model 2 around ₹45 lakh, the Model 3 between ₹70 and ₹90 lakh, the Model Y around ₹70 lakh, the Model S at ₹1.5 crore, and the Model X at ₹2 crore. If Tesla establishes local manufacturing in the future, these prices could come down, making its vehicles more accessible to a larger segment of Indian buyers. To establish its presence, Tesla is planning to set up flagship showrooms in major Indian cities, with Mumbai and Delhi among the first locations. The Mumbai showroom is expected to be located in the Bandra Kurla Complex (BKC), while the Delhi showroom will be near Indira Gandhi International Airport in Aerocity. These showrooms, likely spanning around 5,000 square feet, will serve as experience centers where customers can learn about Tesla’s technology, explore vehicle features, and place orders. However, setting up a strong service and charging infrastructure will be crucial for Tesla’s long-term success in India. While Tesla’s Supercharger network is renowned worldwide, India currently lacks an extensive EV charging ecosystem. Expanding charging stations across key highways, metro cities, and semi-urban areas will be necessary to encourage adoption. One of the biggest concerns for Tesla in India is after-sales service. Unlike traditional car manufacturers that have widespread dealership and service networks, Tesla operates on a direct-to-customer model, relying on a combination of online sales and limited service centers. To ensure customer satisfaction, Tesla will have to set up service centers across multiple cities, ensuring the availability of spare parts and trained technicians. The absence of a robust service network could be a major drawback for Tesla owners, particularly in smaller cities where access to maintenance and repairs might be limited. A #Tesla EV could set one back by over Rs 50 lakh in India, compared to Rs 33-34 lakh for #Mahindra‘s top #EV variant.