Tesla is reportedly exploring land options in Satara, Maharashtra, to establish a new assembly facility as part of its plans to enter the Indian market.
According to a report from the publication Business Standard, the plant would operate as a Completely Knocked Down (CKD) facility. A CKD plant allows automakers to ship disassembled vehicle parts from different manufacturing hubs and assemble them in the destination country, helping to reduce tariffs on fully built imported vehicles, something which was a major stumbling block for Tesla’s entry into India.
Industry sources suggest Tesla aims to roll out its first locally assembled vehicles by the final quarter of the current fiscal year, potentially paving the way for an official market entry by April 2026.
The move to scout for land in this area follows several months of negotiations with various Indian states and potential joint venture partners. Earlier discussions with Hyderabad-based Megha Engineering for a joint land acquisition reportedly fell through. Now, Tesla is said to be considering alternative partnerships while zeroing in on Satara as the preferred location for its CKD operations.
The decision to pursue a CKD facility comes as India’s new EV policy offers significant incentives for manufacturers establishing local operations. Under the policy announced in March 2024, companies committing to invest at least US$500 million in local manufacturing can benefit from a reduced 15% import duty on EVs priced at US$35,000 or above, for a period of five years.
Additionally, India is considering lowering import duties on components used in EV batteries to attract further foreign investment.
Tesla has been accelerating plans for its India entry over the past few months. The company has already secured showroom locations in Mumbai and Delhi, and job postings indicate Tesla is hiring for more than 30 positions across operations, sales, and service in India.
However, the company’s India plans have not been without challenges. Last week, Tesla’s India head, Prashanth Menon, resigned after nearly a decade with the company. Following his departure, Tesla’s China team has reportedly taken over oversight of India operations as the company prepares for its long-awaited entry into one of the world’s largest auto markets.
