Tesla is reportedly exploring land options in Satara, Maharashtra, to set up a Completely Knocked Down (CKD) assembly facility as part of its broader plans to enter the Indian electric vehicle market, according to a report by Business Standard.
A CKD plant allows automakers to ship vehicle components in parts and assemble them locally, enabling manufacturers to reduce tariffs imposed on fully built imported vehicles—a significant barrier Tesla has faced in India. Industry sources indicate Tesla aims to begin rolling out locally assembled vehicles by the final quarter of the current fiscal year, positioning the company for a potential market debut by April 2026.
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The search for a suitable site in Satara follows months of negotiations with multiple Indian states and potential partners. Earlier discussions with Hyderabad-based Megha Engineering for joint land acquisition reportedly ended without agreement, prompting Tesla to explore other partnerships while focusing on Satara as a preferred location for its assembly operations.
The timing aligns with India’s recently introduced EV policy, unveiled in March 2024, which offers substantial incentives for companies investing at least $500 million in local manufacturing. Under this policy, electric vehicles priced above $35,000 that are assembled locally benefit from a reduced import duty of 15% for five years. The government is also considering lowering import duties on EV battery components to attract further investment.
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Tesla has accelerated preparations for its India entry, having secured showroom locations in Mumbai and Delhi. Job listings show the company is recruiting for more than 30 positions spanning operations, sales, and service roles in India.
However, Tesla’s plans have encountered challenges. Last week, Prashanth Menon, Tesla’s head of India operations, resigned after nearly a decade with the company. Since then, Tesla’s China team has reportedly assumed oversight of its India operations as the automaker advances toward launching in one of the world’s largest automobile markets.
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The company’s strategic move to establish a CKD plant in Satara could provide a crucial foothold in India’s emerging EV sector by leveraging local assembly to mitigate import costs and tap government incentives.