Tesla wants India, but it won’t be easy

Tesla, the famous electric car company, might finally be coming to India! Reports say it could set up shop by April, with locations in Delhi and Mumbai. It has even posted 13 job openings. But this doesn’t seem like a plan to build cars in India—just to import and sell them. Still, many fans will be excited. After all, only one American car brand, Jeep, is left in India after General Motors and Ford left.

But here’s the catch—Tesla cars are expensive! The cheapest one, the Model 3, costs around ₹28 lakh in China. If India gets imports, the price will be even higher because of taxes. So, it will mostly be for rich people who care about the environment. Tesla had thought about coming to India before—in 2014 and again in 2022—but backed out both times when the Indian government refused to lower import taxes without a promise to build cars here.

So why is Tesla trying again now? Well, the company isn’t doing as well as before. In 2022, it made a 30% profit on each car, but by the end of 2024, that number dropped to less than 15%. Its cars are now selling for around $40,000 on average, a big drop in price. In Germany, where Tesla has a big factory, EV sales fell 40% last December. Even though Tesla set a record in China, selling 657,000 cars last year, local brands like BYD and Xiaomi are giving it tough competition.

Tesla also faces new challenges. Other carmakers, including BMW and Mercedes, are already making electric cars in India. And Tesla’s once-unique technology isn’t so special anymore—companies like BYD are working on their own self-driving features. Meanwhile, in the US, Elon Musk is fighting legal troubles over Tesla’s crash investigations and car safety claims.

All of this means Tesla really needs a new, growing market. India could be that place, but it won’t be easy. Let’s see if Musk finally makes it happen this time!

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