Elon Musk’s plan to import Tesla from Germany may seem like a novel move but a Moneycontrol analysis shows that India is no stranger to importing electric vehicles from the Western European nation.
Germany has been one of the two major exporters of electric cars to India besides China. In the first 11 months of 2024, of the 6,410 electric cars imported from across the world, 37 percent, or 2,360, came from Germany. China accounted for 51 percent, or 3,270, imported electric cars.
Tesla has production facilities in China and Germany.
While the Indian government is hoping that Musk’s EV firm would eventually set up a manufacturing base in India, US President Donald Trump doesn’t seem to0 pleased with prospects of such a move by his department of government efficiency (DOGE) chief.
“If he built the factory in India…that’s unfair to us,” Trump had said earlier this month while complaining about India’s “high” tariffs.
India’s import of EVs is not limited to China and Germany only. Sweden, the US and Korea were also among the top five exporters of electric four-wheelers, though in smaller numbers.
Drifting to China
Tesla is expected to help Germany regain some of the lost share of Indian market when it comes to the export of EVs.
While Germany was the top exporter of EVs to India until 2023, selling almost twice as many cars as their Chinese counterparts, the situation reversed in 2024.
Chinese automaker BYD has made significant inroads in the Indian market.
Premium game
However, where Germany outscores China is the value of EV imports. In terms of value, German EV exports were worth $110.2 million, twice as China’s at $48.7 million.
The average value of China’s EV imports was $14,887 in 2024, while German imports cost $46,691 a vehicle. The US imports were even more expensive at $52,889.
While the cheapest Tesla in the US is valued at $38,990, a 25 percent import duty will push the Indian price closer to $50,000.
Tesla has not said anything officially about its India plans but in the last few days, it has posted several job advertisements on LinkedIn for roles based in Mumbai and Delhi, signalling the company’s plan after Musk meet Prime Minister Narendra Modi during his US trip.
Tesla is reportedly planning to set up showrooms in Mumbai's business district of BKC, and at Aerocity in New Delhi. It is looking to begin its retail operations in India by April, reports have said.
Recently, it also advertised for the role of PCB design engineer, electronic systems in Pune.
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