Tesla eyes India operations by April, starting with a EV under Rs 22 lakh imported from Berlin plant, says CNBC-TV18

Global EV major Tesla's CEO Elon Musk may be considering to kick start retail operations in India by April this year, starting with importing electric cars from the company's Berlin plant, CNBC-TV18 has on February 19 reported citing people familiar with the development.

Showroom locations have been identified in Mumbai's business district of BKC, and at Aerocity in New Delhi. Initial plans involve the launch of an EV under $25,000, or sub-Rs 22 lakh, for sale in India.

While Tesla has not yet committed to make its electric cars in India, it will be sourcing more components from Indian OEM suppliers. CNBC-TV18 reported that this sourcing from domestic ecosystem will significantly increase over the next few years, reaching over $1 billion mark by 2025.

The global EV giant is expecting Indian government to further cut import duties from the present 70% owing to the threat of reciprocal tariffs announced by the Trump administration. Tesla had in the past shied away from the Indian market over high import duties on imported cars, however, the basic customs duty on high-end cars costing over $40,000 have been reduced from 110% to 70%.

The Commerce Ministry has reportedly called for a Inter-Ministerial Meeting on trade ties with USA, and could seek inputs to firm up a multi-sector, bilateral trade agreement. Tariffs on automobile sector are likely be to discussed as well, as part of the meeting, CNBC-TV18 reported.

The EV maker is also on the lookout for land parcels for a manufacturing presence in India, likely in Maharashtra, The Economic Times reported on February 19.

The channel also reported that Tesla CEO Elon Musk is likely to accompany US President Trump during a probable India visit later this year.

This comes just days after Tesla rolled out hiring in India, seeking candidates for 13 roles, through the jobs portal LinkedIn.

Recent developments follow Elon Musk's one-on-one meeting with PM Modi during his US visit earlier this month, where both nations agreed to start discussions on boosting bilateral trade.