Tesla in India: As Elon Musk-led Tesla prepares to start selling electric vehicles in India, a statement by JSW Group chairman Sajjan Jindal is going viral on social media. Jindal expressed confidence in domestic manufacturers Tata Motors and Mahindra & Mahindra’s stronghold over the market.
Speaking at the Ernst & Young ‘Entrepreneur Of The Year’ awards panel discussion, Jindal said that Elon Musk would not find it easy to chart a success story in India.
“Elon Musk is not here. He is in the US,” he said. “We Indians are here. He cannot produce what Mahindra can do, what Tata can do—it’s not possible. He can do (it) under Trump’s shadow, in the US. He’s super smart, no question about it. He’s a maverick, doing spacecraft and all that. He’s done amazing work, so I don’t want to take anything from him. But to be successful in India is not an easy job,” Jindal said.
Also Read | Donald Trump’s tariffs: India may be among least vulnerable Asian economies in trade war with US – but there’s a catch!
Jindal, who collaborates with Chinese automotive manufacturer SAIC to produce MG Motor vehicles, intends to establish his own electric vehicle brand. He expressed strong confidence in his venture’s future success, stating: “I’m putting my heart and soul into the auto business, and I’m 100% sure it will be super successful; there’s nothing that can stop me. This country needs a huge amount of autos, huge amounts of good quality stuff.”
Tesla’s India Entry: Retail Space Finalised
Tesla has finalised a showroom lease spanning 4,003 square feet in Mumbai’s Bandra Kurla Complex, a major commercial district. The agreement, commencing February 2025, carries an initial annual cost of $446,000, with yearly increments of 5%. The chosen location sits adjacent to an Apple store within Jio World Drive, a property under Reliance Industries, owned by Mukesh Ambani.
The electric vehicle manufacturer has initiated its recruitment process in India, seeking candidates for various positions including store management, service operations and customer relations roles. The company remains silent on establishing local production facilities, which presents a significant challenge in India’s cost-conscious market, where imported electric vehicles face substantial customs duties.
Also Read | How will Elon Musk-led DOGE’s slashing of federal spending impact Indian IT companies?
Tata Motors and Mahindra Gear Up to Face Tesla
As Tesla considers entering India, domestic electric vehicle manufacturers are strengthening their market positions.
Tata Motors, which leads India’s EV sector, has marked its achievement of 200,000 EV sales by offering various customer benefits, including exchange bonuses, complete financing options and complimentary charging facilities. Despite maintaining its leadership, the company’s market share has decreased from 73% to 62%.
In parallel, Anand Mahindra, Chairman of Mahindra & Mahindra, has expressed optimism about competing effectively. Referencing India’s economic reforms of 1991, when international automotive companies like Ford and Hyundai entered the market, he recently said.
“We have not just survived, but we continue working like maniacs to remain relevant even a century from now. With your support, we will make it happen.”
Trump-led US wants zero tariffs
The United States administration under Donald Trump is pushing for India’s consent to eliminate duties on car imports within a suggested two-way trade deal. Sources informed Reuters that whilst India is considering lowering these charges, it remains unwilling to immediately reduce them to zero.
Vehicle import levies in India can reach up to 110%, a rate that has drawn criticism from Tesla’s chief executive Elon Musk, who has called them amongst the steepest worldwide. These high duties previously caused the electric vehicle company to withdraw its plans to launch in India, despite the country being the third-biggest automotive market globally.
Also Read | Elon Musk’s Tesla in India: Trump-led US wants zero tariff on cars imports
According to one of three sources briefed on the matter who spoke to Reuters, the issue of India’s high automotive duties will be discussed in forthcoming official trade talks. This could prove advantageous for Tesla, the electric vehicle company led by Elon Musk, as it prepares to establish its presence in the Indian market.
