In a recent discussion at the Ernst & Young Entrepreneur of the Year awards, Sajjan Jindal, Chairman and Managing Director of the Jindal Group, expressed skepticism regarding Tesla’s potential success in India, emphasizing the strong presence of domestic automotive giants like Tata Motors and Mahindra & Mahindra. Jindal remarked, “Elon Musk is not here. He is in the US. He is likely to come. He can’t be successful in this country. Because we Indians are here. We are here.” indiatoday.in
Jindal further elaborated on the capabilities of Indian manufacturers, stating, “He (Musk) cannot produce what Mahindra can do, what Tata can do. Not possible.” While acknowledging Musk’s intelligence and accomplishments, Jindal highlighted the challenges foreign companies might face in the Indian market, noting that succeeding in India is not an easy task.
Despite Jindal’s reservations, Tesla has been actively preparing for its entry into the Indian market. The company has leased a 4,003-square-foot office space in Mumbai’s Bandra Kurla Complex, with the lease commencing in February 2025. This strategic move indicates Tesla’s commitment to establishing a presence in India.
In addition to securing office space, Tesla is ramping up its recruitment efforts in India, advertising 20 job openings across Mumbai and Pune. The company is also scouting locations for showrooms in major cities like Mumbai and Delhi, signaling its intent to cater to the Indian consumer base. Business Today
Tesla’s Model Y is anticipated to be the company’s inaugural offering in India, expected to launch in the latter half of 2025. Priced between ₹60-70 lakh, the Model Y will compete with entry-level electric vehicles from established luxury brands such as Mercedes-Benz, BMW, and Audi.
The Indian electric vehicle (EV) market is witnessing intensified competition, with domestic manufacturers like Tata Motors and Mahindra & Mahindra strengthening their positions. Tata Motors, the country’s leading EV manufacturer, is focusing on locally produced EV batteries to maintain its competitive edge. The company plans a $1.5 billion investment in a battery gigafactory in India, expected to start production by 2026, to integrate its supply chain further.
Mahindra & Mahindra has also been proactive in the EV space, launching new models and investing in technology to meet the growing demand for electric vehicles in India. The company’s commitment to innovation and understanding of the local market dynamics provide it with a competitive advantage over new entrants.
Sajjan Jindal’s own ventures into the automotive sector further underscore the competitive landscape Tesla will face. JSW Group has announced plans to launch its own electric vehicle brand, marking its ambitious entry into India’s growing EV market. This move signifies the group’s commitment to contributing to the nation’s EV ecosystem and presents additional competition for Tesla. ft.com
One of the significant challenges Tesla may encounter in India is the country’s steep import duties on fully built imported EVs, which can exceed 100%. These high tariffs have been a point of contention for Tesla CEO Elon Musk and could impact the company’s pricing strategy in the Indian market.
The U.S. government has been advocating for reduced tariffs on car imports as part of a proposed bilateral trade deal, which could facilitate Tesla’s entry into the Indian market. However, domestic automakers like Tata Motors and Mahindra & Mahindra have opposed lowering tariffs, fearing it will hinder local manufacturing and investments. reuters.com
In conclusion, while Tesla’s planned entry into India marks a significant development in the country’s EV landscape, the company will face formidable competition from established domestic players like Tata Motors and Mahindra & Mahindra. These companies have a deep understanding of the local market, established supply chains, and strong brand recognition among Indian consumers. Additionally, challenges such as high import duties and the need for local manufacturing could pose hurdles for Tesla’s success in India. As the EV market in India continues to evolve, it remains to be seen how Tesla will navigate these challenges and establish its presence in this burgeoning sector.
