Elon Musk, CEO of Tesla Inc., announced plans to visit India later this year following discussions with Prime Minister Narendra Modi. The announcement, made on Musk's social media platform, X, signals a significant step toward Tesla's entry into the Indian electric vehicle (EV) market.

This development comes amid Tesla's renewed efforts to establish a presence in India, aligning with the government's recent EV policy revisions aimed at attracting global manufacturers.

Tesla has been exploring entry into the Indian market for several years. In 2022, the company faced challenges due to high import tariffs, leading to a temporary halt in its plans. However, recent developments suggest a renewed commitment.

In March 2025, Tesla finalized a lease agreement for its first showroom in Mumbai, located in the Maker Maxity building within the Bandra Kurla Complex. The lease spans five years, with the initial annual rent set at approximately $446,000, increasing by 5% annually. Additionally, Tesla has selected locations for showrooms in New Delhi and Mumbai, each approximately 5,000 square feet. The New Delhi showroom is planned for Aerocity, near the international airport.

Following Musk's meeting with Prime Minister Modi, Tesla has been actively recruiting for various roles in India, indicating a fast-tracked market entry plan. The company listed 13 job openings for customer-facing and back-end roles, hinting at plans for local showrooms.

In March 2024, the Indian government introduced a revised electric vehicle (EV) policy aimed at attracting global manufacturers like Tesla. The policy allows foreign automakers to import up to 8,000 EVs annually, priced at $35,000 or higher, at a reduced import duty of 15% (down from the previous 70%). This concession is contingent upon a minimum investment of $500 million in local manufacturing within three years. Companies are required to achieve 25% domestic value addition within three years and 50% within five years.

Tesla's entry into the Indian market carries several potential implications. The presence of Tesla could intensify competition in India's EV sector, challenging local automakers like Tata Motors and Mahindra & Mahindra to innovate and improve their offerings. Tesla's investment is expected to create numerous job opportunities, both directly within the company and indirectly through the supply chain and related industries. Collaboration between Tesla and Indian entities could lead to technological advancements and knowledge transfer, benefiting the broader automotive and energy sectors.

This is not the first time Musk has planned a visit to India. In April 2024, he postponed a scheduled visit due to "very heavy Tesla obligations." At that time, he expressed his intention to visit later in the year, highlighting his ongoing interest in the Indian market.

Musk's upcoming visit and Tesla's strategic moves align with India's efforts to become a global hub for electric vehicles, signaling a transformative period for the country's automotive landscape.