Tesla has once again captured worldwide attention with the announcement of its most affordable electric vehicle yet. The new EV is set to launch in the first half of 2025. The EV pioneer is known for its cutting-edge technology, innovation, and autonomous driving capabilities.
Tesla’s latest EV announcement and India’s Union Budget 2025 have rekindled hopes for a lot of eager car buyers for the company's official entry into the country.
Tesla's Affordable Electric Car 2025
Tesla successfully reduced its manufacturing costs in late 2024 due to a drop in raw material prices. The company has now confirmed the launch of its most affordable EV ever to expand into the mass market.
This upcoming model, possibly named Tesla Model 2, is expected to be a game-changer. However, Tesla has not yet revealed any more details about the car.
Also read: Indian Auto Sector Set to Grow in Clean Tech with Budget 2025
Tesla's India Plans 2025
Indian buyers have long awaited Tesla’s entry into the market. Elon Musk had previously shown interest in launching Tesla in India, but his plans remain on hold. Musk was scouting showroom locations in NCR in December 2024 and had also planned to meet Prime Minister Narendra Modi to discuss Tesla’s India strategy. However, there has been no further progress or official confirmation of Tesla’s entry into India.
Can Union Budget 2025 allow Tesla's Entry into India?
The Union Budget 2025 has introduced two key changes that may make Tesla’s India entry more feasible. First, the tax on luxury cars above $40,000 has been reduced from 125% to 70%. This means Tesla vehicles are now more affordable for Indian buyers. Second, the government has eased lending for MSMEs and waived off basic customs duties on EV battery components.
These changes could encourage Tesla to reconsider its India plans. There is no official confirmation for this but it has renewed hope that Tesla may take steps to enter the Indian market later this year or in 2026.
