Prime Minister Narendra Modi visited Tesla Motors' iconic headquarters in California.
The car firm however does not want to sell its business.
Tesla is set to officially enter the Indian market with the launch of its first experience center in Mumbai. The move follows leasing of warehousing space and discussions with the Indian government regarding tariffs and manufacturing.
In September, Tesla and VinFast accounted for less than 0.5 per cent of all EV registrations.
Six months after its India debut, the Vietnamese automaker has overtaken established players such as Hyundai Motor, BMW, Kia, and Chinese EV major BYD.
Analysts believe Tesla will first focus on building the Model Y brand before expanding -- both in terms of volume and models.
Vinfast sold 137 cars versus Tesla's 109 during the festive months of September and October, as BYD maintained a strong lead with over 1,100 cars sold, according to Fada data.
Tesla's official entry into the Indian market is expected in the final quarter of the current financial year.
Electric passenger vehicle (PV) retail sales jumped more than twofold in September with Tata Motors (TaMo) leading the pack having over 6,000 registrations and a 40 per cent market share.
The US carmaker's entry into India is expected by the last quarter of the current financial year.
Tesla needs to either sell the same models with reduced features to lower the cost for Indian market, or incur losses.
While Elon Musk's political influence continues to grow, his business empire is witnessing headwinds.
Elon Musk-led Tesla Inc is yet to express interest in India's flagship scheme to attract global investment in electric vehicle (EV) manufacturing, said Union Minister for Heavy Industries H D Kumaraswamy on Monday. In contrast, multiple global automobile giants -- such as Mercedes-Benz, koda Auto Volkswagen, Hyundai Motor, and Kia Motors -- are keen to participate, the minister noted.
'Gujarat is the frontrunner at present.'
'However, Tamil Nadu's robust automobile ecosystem and Telangana's aggressive incentives make them strong contenders.'
Starting January, the market is expected to welcome models like the Tata Punch 2025 which is expected to be around 6 lakh, Mahindra BE 07 EV around 29 lakh, Maruti WagonR Electric around 8.5 lakh, Toyota 3-Row SUV around 14 lakh, and Volkswagen Tera to be around 8 lakh.
With India's EV penetration at just 2.5 per cent, the market presents an opportunity -- provided Tesla gets its pricing right.
'Every Indian should move to an EV, and the government should not buy any fossil fuel cars. The government should become the first driver of EV adoption.'
Risks emerging from the US have left automotive investors worried. US President Donald Trump has announced 25 per cent tariffs on automotive imports, while global electric carmaker Tesla has taken its first steps towards entering India. While these developments are sentimentally negative for related stocks, it may be too early to conclude the eventual impact, analysts said.
If Tesla comes in, India's position as a manufacturing hub will rise many notches, as it will become only the second country, after China, to have both Apple as well as Tesla.
The company resurrected electric vehicle market with cars that are visually appealing and performance driven.
it's the first all-wheel drive electric car.
US-based Tesla is working through a lot of challenges with the government to launch its products in India, the electric car major's founder and CEO Elon Musk said on Thursday. Responding to a tweet on the company's plans to launch its products in India, Musk tweeted: "Still working through a lot of challenges with the government." Last year, Tesla had sought a reduction in import duties on electric vehicles (EVs) in India.
Modi discusses battery technology's impact on India at Tesla
Tesla's Model 3 sedan, scheduled to roll out later this year, will be critical to founder Elon Musk's ambitions to transform his company from a niche car-maker into a mass-market manufacturer.
The compact sleek car with no grille features a roof that is a panoramic pane of glass from front to back.
India may see its busiest EV festive season in 2025 with SUVs, luxury cars and scooters set to launch, but rare-earth supply bottlenecks risk delaying rollouts.
In its first official engagement with the Indian government, Elon Musk-led Tesla and other global automotive (auto) manufacturers sought clarification on the new electric vehicle (EV) policy, specifically regarding investment guidelines and the timeline for the domestic value addition (DVA) requirement. Officials who attended the meeting told Business Standard that the original equipment manufacturers (OEMs) tried to understand whether the complete investment would be made within three or five years and the duration they would have to achieve the 50 per cent DVA. "The consultation meeting was convened to address queries from auto OEMs.
India is sceptical that Tesla might import into the country cars made in China. Tesla executives were in India last month and appear to have proposed a factory in the country. But do not be surprised if that does not happen in a hurry.
He says that while 30 per cent of parts must be locally sourced, the supply doesn't yet exist in India to support that
India will not tailor its policies to suit US EV maker Tesla, and its laws and tariff rules will be formulated to attract all-electric vehicle manufacturers from across the world to set up a base in the world's fastest-growing economy, Commerce and Industry Minister Piyush Goyal said. Tesla has been seeking an initial tariff concession that would allow it to offset 70 per cent customs duty for cars priced less than $40,000, and 100 per cent for cars of higher value.
Union Minister Nitin Gadkari on Tuesday said if the US-based Tesla is ready to manufacture its electric vehicles in India then there is 'no problem' but the company must not import cars from China. In an interactive session at the Raisina Dialogue, Gadkari further said India is a large market and there is a huge potential for all electric vehicles. "If Elon Musk (Tesla CEO) is ready to manufacture in India then there is no problem ... Come to India, start manufacturing, India is a large market they can export from India," he said. The road transport and highways minister said his request to Musk is to come and manufacture in India.
Senior Tesla executives including those from its supply chain are planning to come to India on Wednesday and Thursday for meetings with government officials, including those in the Prime Minister's Office, according to sources. Prashant R Menon, director of Tesla India, did not respond to a specific query on the meetings. Sources say that the executives are coming to see how they can expand and develop local sourcing of components from India for the Tesla car.
Elon Musk's likely referring to waiver of 30% local sourcing norm for setting up single-brand retail
American electric car maker Tesla has registered its Indian arm amid indications that the company is set to enter the country's automobile market. According to a regulatory filing, the firm has registered Tesla India Motors and Energy Pvt Ltd with RoC Bangalore. The company has been registered as an unlisted private entity with a paid up capital of Rs 1 lakh.
Tesla Inc, the world's largest electric car producer, is looking to make a significant investment in India, said its chief Elon Musk, who saw India as holding more promise than any other large country around the globe. Musk, after meeting Prime Minister Narendra Modi, said he plans to visit India in 2024. "I am confident that Tesla will be in India and we will do so as soon as humanly possible," Musk told reporters after the meeting.
What will it take for Tesla to plug and play in India? Sector pundits say it's a mix of strategy, getting the price right, timing, the right talent, and above all, patience.
Model 3 received 180,000 orders worldwide.
Modi has set a target of generating 100 Gw of solar power by 2022.
It's the same sourcing norms that have been a hurdle for multinationals such as Apple Inc in setting up retail operations in India.
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