Tesla pushes 0 import tax in India

Tesla has signed an agreement to build its first ever showroom at BKC (Bandra Kurla Complex) after it released about two dozen jobs in Mumbai, India. The development that led to the deal began with the recent visit of Indian Prime Minister Narendra Modi to the United States of America. Now, we will witness Tesla entering the Indian market through imported CBU vehicles.

Tesla Showroom India – Where?

The first ever showroom of the Indian Tesla company will be established in Maharashtra, the country’s financial capital. Since February 16, 2025, Tesla has signed a five-year lease transaction in the Bandra Kurla complex in Mumbai, which lasts for five years.

The first year value of the lease transaction was US$4,46,000 (approximately Rs 3.89), and rents grew steadily by 5% each year. In the five years of signing, the total cost of Tesla was US$2.5 million (approximately Rs 21.77). This new showroom will be located in the Maker Maxity building in the retail centre of the Bandra Kurla complex, near Chatrapati Shivaji Maharaj Maharaj International Airport Mumbai (BOM).

The Model 3 is probably Tesla’s preferred choice for launch in India, as it is their most affordable product. We can expect a full load variant, a strategy for importing vehicles in India. That is, the Y model may be wiser to Indian conditions due to its higher ground clearance. The company will import cars to India via the CBU route. This attracted huge tariffs that Tesla CEO Elon Musk and U.S. President Donald Trump said were retained. But according to the new report, Tesla is paying attention to 0 import tax.

Will import tariffs be eliminated?

Currently, the import volume of CBU cars means as much as 110%. This has been a constant criticism for Elon Musk and U.S. President Donald Trump. The latest developments between the two countries have proposed a proposed trade agreement. If the deal is signed between the two countries, the Indian government is expected to lower import tariffs to zero or close to zero. The Trump administration is pushing the trade deal and criticized the 110% import tariff imposed by the Indian government, threatening reciprocity action.

After Indian Prime Minister Narendra Modi’s visit to the United States last month, both countries agreed to address tariff woes with the goal of conducting bilateral trade worth $500 billion (about Rs 4.352 crore) by 2030. Although the U.S. net retail sales are net zero tariffs, the Indian government’s driving force may significantly reduce these tariffs rather than these levied products, rather than comparisons, rather than competitors. The Indian government has reportedly met with domestic automakers and discussed the implementation of zero import tariffs. As imports become cheaper, domestic players oppose this objection because it hinders local production in the country.

Source 1, Source 2