Tesla is set to commence its operations in India with the introduction of an economical electric vehicle. Reports indicate that the company may unveil a ₹21-lakh electric vehicle as a means to initiate its presence in the Indian market. This development comes amidst heightened speculation regarding Tesla's entry into India, particularly following a recent meeting involving Prime Minister Narendra Modi, US President Donald Trump, and Tesla CEO Elon Musk. While Trump has expressed doubts about Tesla's ability to successfully sell vehicles in India, he has also deemed it inequitable for the company to establish a manufacturing facility in the country.

In a recent discussion, Donald Trump highlighted the significant tariffs imposed on imported vehicles in India, which could hinder Tesla's efforts. Both Trump and Musk have previously criticized India's policy of imposing a 100 percent tariff on imported electric vehicles. Tesla had to postpone its plans to launch in India in 2022 due to these high tariffs and the stipulation that companies must commit to local manufacturing to receive any tariff concessions. The Indian government has since introduced a new electric vehicle policy that offers to reduce the import tax to 15 percent, provided that a car manufacturer invests a minimum of $500 million and establishes a factory in India.

Why Donald Trump says it is impossible for Tesla to sell cars in India

Donald Trump asserted that Tesla would face significant challenges in selling vehicles in India unless it established a local manufacturing facility. In a discussion with Fox News, Trump remarked, “Every country in the world takes advantage of us, and they do it with tariffs... It is practically impossible to sell a car in India, for instance.” He also commented on Elon Musk, stating, “If he were to build a factory in India, that would be acceptable, but it would be unfair to us. It is very unfair.”

Previously, Tesla indicated its intention to initially market its electric vehicles in India, with plans to evaluate the establishment of a local manufacturing plant contingent upon its success in the market. Various state governments have extended offers of land for Tesla to develop its facility; however, a definitive decision has yet to be made.

Tesla to launch India operations with an affordable EV: Report

In light of ongoing speculation regarding Tesla's entry into the Indian market, a recent report suggests that the electric vehicle manufacturer is poised to unveil an economical electric car tailored for this region. As per a report from CNBC-TV18, Tesla may initially launch electric vehicles produced at its Berlin GigaFactory in India. Furthermore, the report indicates that the anticipated price for Tesla's inaugural electric car could be approximately ₹21 lakh (around $25,000). It is also reported that the company aims to commence sales of electric vehicles in India as soon as April of this year.

Tesla's $25,000 EV project to revive?

Several reports indicate that Tesla may initiate its operations in India with electric vehicles such as the Model 3 and Model Y. However, there are uncertainties regarding the revival of the company's affordable electric car initiative. The Model 3, which serves as Tesla's entry-level electric vehicle, is priced at approximately ₹36 lakh in Germany, and the cost in India is expected to be significantly higher due to import duties.

In February, Tesla suggested plans to introduce its highly anticipated and much-discussed budget-friendly electric vehicle by June 2025. CEO Elon Musk has indicated that the company is preparing for a substantial product launch, with the forthcoming vehicle likely to be named the Tesla Model 2. The affordable electric car project had previously been put on hold as the company concentrated on developing robotaxis.

It is anticipated that Tesla will produce the budget electric vehicle at its German facility and subsequently export it to markets such as India and Brazil. Although Tesla has not disclosed specific details regarding the new electric vehicle, it has suggested that it will incorporate elements from both next-generation and existing platforms, and will be manufactured on the same production lines as the current models.

Read Also: BMW F 450 GS Set for Late 2025 Unveiling, Local Production Confirmed

Get the latest Bollywood entertainment news, trending celebrity news, latest celebrity news, new movie reviews, latest entertainment news, latest Bollywood news, and Bollywood celebrity fashion & style updates!

HOW DID YOU LIKE THIS ARTICLE? CHOOSE YOUR EMOTICON!