US President Donald Trump has criticized Tesla's potential plans to manufacture electric vehicles in India, calling the move "unfair" to the US during an interview with Fox News. His comments came shortly after reports emerged about Tesla's strategy to enter the Indian market through local manufacturing to circumvent high import tariffs.
The president noted that selling cars in India is virtually impossible without local production facilities, arguing that countries like India use tariffs to disadvantage the US in international trade.
The controversy follows the Indian Prime Minister's recent visit to the US, which included meetings with former President Donald Trump and Elon Musk, fueling speculation about Tesla's imminent entry into the Indian market.
Tesla's India entry plans take shape
According to CNBC-TV18, citing informed sources, Tesla could begin its Indian operations as early as April. The company initially plans to import electric vehicles from its Berlin facility, with a focus on launching models priced below US$25,000.
Multiple news sources, including Reuters, report that Tesla has identified locations for company-owned showrooms in Delhi's Aerocity and Mumbai's Bandra Kurla Complex. Industry sources suggest India might consider reducing import duties on electric vehicles to prevent retaliatory tariffs from the US.
The American EV maker resumed its search for showroom spaces in late 2023, after previously abandoning its India expansion plans in 2022 due to regulatory challenges. This renewed interest signals Tesla's determination to establish a presence in what has become the world's third-largest automotive market.
According to reports from Reuters and Bloomberg, Tesla has posted 13 job listings on its website and LinkedIn this week, including positions for store management in Mumbai, along with roles in delivery operations and customer support. These hiring moves indicate the company's serious intent to launch operations in India's financial center.
While Tesla has long expressed interest in entering the Indian market and setting up local manufacturing operations, its previous attempt in 2022 was suspended, resulting in the departure of several senior executives.
In a significant policy shift, the Indian government introduced measures in March 2024 to reduce import taxes to 15% for automakers investing a minimum of US$500 million in local factory construction. Supporting this initiative, the Indian finance ministry eliminated basic customs duties on imported battery materials in February 2025 to encourage domestic EV production.
