Tesla is ramping up its efforts to enter the Indian market, focusing on both retail and manufacturing initiatives. The company has already begun recruiting for its Mumbai store, signaling its commitment to establishing a strong retail presence. However, the location for its manufacturing hub remains undecided, with multiple states vying to host the facility. 

Retail Expansion 

Tesla is actively hiring for 13 positions at its upcoming Mumbai store, including roles in sales, service, and customer support. Additionally, a showroom in New Delhi’s Aerocity is in the works. Both locations, each around 5,000 square feet, will focus on selling imported electric vehicles but won’t serve as service centers. While the showroom launch is imminent, the timeline for vehicle sales remains unclear. 

Manufacturing Prospects

Tesla has scouted potential sites in Maharashtra, Gujarat, and Tamil Nadu for its manufacturing hub. Preferred locations include Chakan and Aurangabad in Maharashtra, but no final decision has been made. States are competing aggressively to attract Tesla’s investment, which could significantly boost local economies and the EV ecosystem. 

Government Engagement

Tesla officials are set to visit India in April to meet with the Prime Minister’s Office and other ministries. These discussions will focus on regulatory frameworks and potential incentives for Tesla’s entry. To benefit from reduced import duties, Tesla must apply under India’s EV policy, which requires a minimum investment of ₹4,150 crore ($500 million) and achieving 50% domestic value addition within five years. 

Investment Plans

Reports suggest Tesla may invest $3 to $5 billion initially in India. This aligns with India’s push to become a global EV manufacturing hub. However, Tesla’s long-standing demand for lower import duties on EVs—currently at 100%—remains a hurdle, as local automakers resist fearing market disruption. 

As Tesla moves closer to entering India, its dual focus on retail and manufacturing could reshape the country’s EV landscape, creating opportunities for growth and innovation.