Tesla India: Launch Date, Models & Updates

According to a leading Indian official, Tesla anticipates commencing operations within India during “early” 2021, following the electric vehicle manufacturer’s recent statement expressing confidence in entering the nation – the world’s second most populous country – in the coming year.

The initial phase of Tesla’s involvement will center around vehicle sales starting in early 2021, with potential consideration given to establishing assembly and manufacturing capabilities within the country at a later date, as stated by India’s transport minister, Nitin Gadkari, in an interview with the Indian Express. However, Tesla CEO Elon Musk clarified via social media over the weekend that this entry will not occur in the immediate future.

Tesla has demonstrated a long-standing interest in expanding its presence into the Indian market. Nevertheless, Musk previously indicated in a 2018 post that certain “government regulations” within India presented obstacles to this expansion.

Musk has cultivated a substantial following in India, mirroring his global popularity. In 2016, a number of individuals submitted a $1,000 deposit to pre-order the Model 3, but delays in delivering these vehicles to Indian customers were attributed to local regulatory challenges by Musk.

In a 2017 communication, Musk explained that he had been informed of a requirement for 30% of components to be sourced locally, but that the necessary supply chain to support this level of local sourcing did not yet exist within India.

The Indian automotive market currently features several established manufacturers. Maruti Suzuki, Hyundai, Tata – a diversified conglomerate – and Mahindra are prominent players in the country. Over the past two years, Tata Motors, Hyundai, Morris Garages, and Mercedes have introduced new electric vehicle models to the Indian market, including the Mercedes EQC and the Tata Nexon EV.

Tesla has consistently prioritized the expansion of its international sales network, currently operating showrooms in Australia, Canada, China, Japan, and Mexico, as well as across Europe. The company established a final assembly facility in Tilburg, Netherlands, in 2013. However, it wasn’t until 2019 that Tesla began vehicle production outside of the United States, initiating electric vehicle manufacturing at its Shanghai factory. Tesla is also currently constructing new facilities in Berlin and Austin, Texas.

India has become a significant competitive arena for American, South Korean, and Chinese companies seeking to broaden their user and customer bases within the South Asian region. For example, Facebook and Google, both identifying India as their largest market by user count, invested billions of dollars in Indian telecom company Jio Platforms earlier this year. Apple has also increased its local production in India to gain a larger share of the smartphone market, currently dominated by Chinese vendors with over 70% control.

The Indian government, which claims to have repealed over 1,000 “outdated laws” in recent years, has acknowledged the concerns raised by Musk. Over the last three years, India has proposed financial incentives totaling billions of dollars to encourage automotive companies to transition to electric vehicles and to stimulate innovation and the manufacturing of batteries, with the goals of reducing oil dependence and improving air quality.

India has also suggested that ride-hailing services like Uber and Ola convert 40% of their fleets to electric vehicles by April 2026, outlining phased conversion targets of 2.5% by 2021, 5% by 2022, and 10% by 2023.

Indian ride-hailing company Ola acquired Amsterdam-based Etergo earlier this year and announced plans to invest approximately $327 million in establishing what it describes as “the world’s largest scooter factory” in the Southern Indian state of Tamil Nadu. This facility is projected to create 10,000 jobs and have an initial production capacity of 2 million electric vehicles annually.

A proposal developed by Niti Aayog, a think tank supported by Indian Prime Minister Narendra Modi, suggested that widespread adoption of electric vehicles could reduce the country’s oil import expenditures by as much as $40 billion over the next decade.

Gadkari expressed his optimism to the Indian newspaper that India will become the leading global manufacturing center for automobiles within five years.