Tesla is continuing to assess the timing of its entry into India’s automotive market, citing concerns over the country’s 100 percent import tariffs on cars, Chief Financial Officer Vaibhav Taneja said on Tuesday.
The electric vehicle manufacturer has long expressed interest in selling in India, the world’s third-largest car market. However, the high tariff rates, which CEO Elon Musk has previously described as among the highest globally, have been a major obstacle.
Despite the challenges, Tesla has made recent moves toward establishing a presence in India. The company has secured showroom space and posted over two dozen job openings. Public customs data shows that Tesla imported a Model Y vehicle from Germany to India in March, valued at approximately $46,000.
Speaking on an earnings call, Taneja noted that the tariffs significantly increase vehicle costs, creating concern among potential customers. “The same car which we’re sending is 100 per cent more expensive than what it is. So that creates a lot of anxiety. People feel OK, they’re paying too much for the car,” he said. “That’s why we’ve been very careful trying to figure out when is the right time [to enter India].” He described India as a “very hot market” for future opportunities.
Tesla reported a 71 percent decline in net profit for the first quarter of 2025, further heightening focus on its international expansion plans.
Tesla has been in discussions with Indian officials about reducing import tariffs. Simultaneously, Indian officials and the administration of U.S. President Donald Trump have been negotiating a bilateral trade agreement that includes potential tariff reductions. While the United States has advocated for eliminating the levies on automobiles, Indian policymakers are considering tariff cuts but are unlikely to remove them completely in the short term.
India’s domestic automakers, including Tata Motors and Mahindra and Mahindra, have voiced opposition to lowering import taxes, citing potential impacts on local industry.
Musk indicated earlier this week that he plans to visit India in 2025, following discussions with Prime Minister Narendra Modi about technological and innovation partnerships. A planned visit last year, which was expected to include announcements of a $2 billion to $3 billion investment, was postponed.
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