Tesla entry confirmed in India by Nitin Gadkari

Date: 29/12/2020

With Nitin Gadkari, the Union Minister for Road Transport and Highways, Tesla's long-awaited entry to India is now not too far away, announcing that the company is expected to launch its operations in India in 2021.

Tesla expected to begin with CBU imports
Elon Musk reiterates commitment to enter India in 2021
Model 3 likely to be the first Tesla to be sold in India

The latest Tesla India launch news

As reported by The Indian Express, Gadkari announced that Tesla would enter the Indian market in 'early 2021' after a painfully long wait. He went on to note that by setting up his distribution network, Tesla will begin its India journey, and will assess local assembly or development at a later date, based on market response.

Speculation has been raging about Tesla kicking off its Indian activities in January 2021, but in response to a tweet, company CEO Elon Musk refuted the report, while also reiterating Tesla's plans to officially reach India next year.

A few months earlier, Musk had also confirmed the company's intent to eventually enter the Indian market. But the latest news indicates that 2021 could be the year when the wait for Tesla's arrival in India ends, after years of will-they-won't-they.

Tesla Model 3 India launch likely

As such, with the company taking the CBU route to ship its cars to our shores, Tesla's India chapter is expected to launch. The Tesla Model 3, which is the most inexpensive model for the group, is likely to be the first import. It was back in 2016 when, in many foreign markets, Tesla opened pre-orders for the Model 3 and one of them was India.

Fans of the India-based Palo Alto carmaker put down USD 1,000 (approximately Rs 73,360) to place an order at the time, but have waited for four years since then, with no concrete progress on when the firm will set foot in our market. Autocar India recognises that those keeping Tesla Model 3 bookings in India do not yet have the option to customise their models online and have yet to obtain an update as to when they should expect the delivery of their vehicles.

Overseas, the Tesla Model 3 with single- and dual-motor options is available. The rear-wheel-drive Standard Range Plus, which has a 423km range and a 0-100kph time of fewer than 6 seconds, opens the line-up. Dual-motor models, including the Long Range AWD, which can do 0-100kph in less than 4.5 seconds and has a range of 568km, and the Output range-topping, which has a time of 0-100kph of just over 3 seconds, a top speed of over 260kph and upgraded brakes.

In the Confidential section of our November 2020 issue, Tesla's plans to set up a direct distribution network to avoid appointing any local distributor partners were first mentioned. Tesla is researching the feasibility of setting up its direct sales model in India, much as it does in other markets worldwide, allowing consumers to position an order online with the firm (with all formalities and paperwork also done digitally) and take delivery of their vehicles from the distribution network of Tesla.

Initially, to ship cars as CBUs, Tesla could very well look at taking the other models to India quickly after Model 3. The carmaker is increasing the production of the Model Y SUV, while the Tesla Model S and Model X continue to be the halo deals of the company, and will undoubtedly find some takers. The Tesla Model 3's price in India is expected to start near Rs 55 lakh as a complete import, with higher variants likely to cost a fair chunk more.

If Tesla can build on its success and convert the buzz into concrete demand, it might be open in the future to set up its plant in India, and all willing to have Tesla set up shop in their state are Maharashtra, Andhra Pradesh, Telangana, Karnataka and Tamil Nadu.