Tesla is carefully considering its entry into the Indian market due to the country's 100% import tariffs on cars. CFO Vaibhav Taneja stated on April 22, 2025, during an earnings call, that these tariffs effectively double the price of their vehicles, causing anxiety among potential customers.
Despite the challenges, Tesla has taken initial steps, including leasing a showroom in Mumbai's Bandra Kurla Complex in March 2025. The company has also posted over 20 job openings in India and imported a Model Y from Germany for testing purposes. This imported Model Y was valued at $46,000.
Tesla is currently lobbying for tariff reductions, but the Indian government is hesitant, with local manufacturers opposing tax cuts on imported cars. Elon Musk still plans to visit India later in 2025 to discuss technology and innovation collaborations. The U.S. is reportedly pushing for zero tariffs on vehicle imports as Tesla's India entry gains traction. However, India is unlikely to drop levies entirely, though it is considering further tariff reductions.