Tesla still weighing India launch as 100% import tariffs fuel buyer anxiety

Tesla remains cautious about its entry into the Indian market, despite recent moves that suggest a launch may be imminent. The electric carmaker’s chief financial officer, Vaibhav Taneja, cited India’s steep 100 percent import tariffs as a key reason for the delay, stating that the price impact is making potential buyers anxious.

“The same car which we’re sending is 100 percent more expensive than what it is. So that creates a lot of anxiety,” Taneja said during Tesla’s earnings call on Tuesday. “That’s why we’ve been very careful trying to figure out when is the right time [to enter India],” he added, calling India a “very hot market.”

Tesla’s long-held ambitions to sell in India have been repeatedly stalled by tariff barriers, which CEO Elon Musk has previously described as among the world’s highest. Yet recent developments suggest the company is preparing to make its long-awaited move.

In March, Tesla imported a Model Y from Germany, with a shipment value of $46,000 (approx. ₹39.2 lakh), according to publicly available customs data. The company has also secured showroom space and listed over two dozen job openings in India in recent weeks.

Tesla’s concerns have reignited trade discussions between New Delhi and Washington. 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.

Homegrown automakers such as Tata Motors and Mahindra & Mahindra have opposed any cuts to import duties, fearing that it could hurt domestic manufacturing.

Tesla’s India plans appeared to have hit a roadblock last year when Musk abruptly cancelled a planned visit, during which he was expected to announce investments between $2 billion (₹17,081 crore) and $3 billion (₹25,621 crore), including for a local EV manufacturing facility.

However, Musk recently confirmed he intends to visit India this year, following a conversation with Prime Minister Narendra Modi on strengthening cooperation in technology and innovation.