With India's EV penetration at just 2.5 per cent, the market presents an opportunity -- provided Tesla gets its pricing right.
The Delhi high court has granted interim injunction in favour of US-based Tesla Inc by directing Indian company Tesla Power India not to use trademarks 'Tesla Power' or 'Tesla Power USA' in any form, including manufacturing of electric vehicles.
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.
In September, Tesla and VinFast accounted for less than 0.5 per cent of all EV registrations.
"I welcome Tesla here in Mumbai. Tesla has opened an experience centre here, and it is a statement that Tesla has arrived and it's a statement they Tesla has arrived in the right city and right state," Fadnavis said on the occasion.
Six months after its India debut, the Vietnamese automaker has overtaken established players such as Hyundai Motor, BMW, Kia, and Chinese EV major BYD.
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.
Analysts believe Tesla will first focus on building the Model Y brand before expanding -- both in terms of volume and models.
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.
Tesla's official entry into the Indian market is expected in the final quarter of the current financial year.
The tariff removal will lower prices of Harley's large-displacement imported motorcycles, which retail between 14.5 lakh and 45.8 lakh but after the duty cut volumes are expected to remain modest.
Amidst growing competition and global softening of EV demand, its India entry was due for a long time and that finally happened sometime back although yet again the approach was different.
With US-based electric vehicle (EV) maker Tesla scouting for a suitable location for its foray in India, Rajasthan has joined the fray with a host of offers to woo the Elon Musk-led company. Other challengers include Gujarat, Tamil Nadu, and Maharashtra. Sources privy to the development said that an initial meeting between the senior executives of Tesla and the government of Rajasthan, which was held last week, turned out to be "quite positive." Tesla would now carry out a survey and is expected to share the survey details with the state's investment promotion department soon.
A shooting at a nightlife venue in Austin, Texas, resulted in three deaths, including the gunman, and numerous injuries. The motive is currently unknown and the FBI is involved in the investigation.
Tesla's plan to manufacture its affordable electric car priced at $25,000 in India and Mexico could materialise sometime in 2025 or thereafter, with Elon Musk declaring that these models would be produced at its existing factories to utilise their full capacity before investing in new manufacturing lines. The company operates factories in Texas and Fremont in the US, Berlin in Germany, and Shanghai in China. By the end of the calendar year 2023, Tesla was manufacturing 1.8 million vehicles annually.
The US carmaker's entry into India is expected by the last quarter of the current financial year.
Global EV giant Tesla is not interested in manufacturing cars in India but keen on establishing showrooms in the country, Union Heavy Industries Minister H D Kumaraswamy said on Monday.
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Tesla CEO Elon Musk has confirmed the company's plans to enter the Indian market, within days of the electric vehicle maker registering its arm in the country.
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.
Restoring weighted tax deductions and adopting a petty patents regime can foster firm-level innovative activity critical for competitiveness, points out Nagesh Kumar.
The Model Y's blend of minimalist design, advanced technology, and practical features certainly makes a strong case. But the true test will lie in its performance on Indian roads and the timely expansion of its charging infrastructure, says Rajesh Karkera/Rediff.
The Indian automotive market offers around 1 million units annual volume opportunity at a price above $23,000.
American electric carmaker Tesla has opened recruitment for various roles in India, including business operations analyst and customer support specialist, in what could be a precursor for the company's entry into the country. As per the job postings on the company's website, the posts are for the 'Mumbai Suburban' area.
BMW Group India is unfazed by the prospect of Tesla entering the electric vehicle market here and feels it will help grow the segment, according to its Managing Director and CEO Vikram Pawah. The group, which sold a total of 1,249 units of electric cars in India across two brands -- BMW and MINI -- has already sold 646 units in the first quarter of 2025 and is keeping its forecast of 15 per cent of its total sales in India coming from EVs, Pawah told PTI in an interview.
Tesla needs to either sell the same models with reduced features to lower the cost for Indian market, or incur losses.
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.
VF 7 and VF 6, as the models are called, will go on sale in August after the inauguration of VinFast's plant in Thoothukudi in Tamil Nadu, and deliveries will follow later.
'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.'
In 2024 alone, South India saw the highest rise in sales in the luxury segment, with Tamil Nadu reportedly registering a 19.3 per cent increase in premium car registrations from 2022-23
SpaceX CEO Elon Musk voices strong support for the H1B visa program, highlighting the immense benefit the US has derived from Indian talent and cautioning against shutting it down.
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President Donald Trump has said if Elon Musk's Tesla built a factory in India to avoid that country's tariffs, it would be unfair to the US. Trump's comments came amid moves by him to increase tariffs significantly. On February 13, hours before Prime Minister Narendra Modi's bilateral meeting with Trump at the White House, the US President announced reciprocal tariffs.
It's the same sourcing norms that have been a hurdle for multinationals such as Apple Inc in setting up retail operations in India.
'The battle for brain power among Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia and Tesla and newer AI companies is fierce.' 'Given the race for AI with China, these companies will find it hard pressed to fill that talent gap,' notes an IT professional based in the US.
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.
'Gujarat is the frontrunner at present.'
'However, Tamil Nadu's robust automobile ecosystem and Telangana's aggressive incentives make them strong contenders.'
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.
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 danger is that when the music stops, the fall will be sudden, faster, and deeper than anyone expects,' warns Debashis Basu.
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