Tesla will reportedly test Model 3 in India next month and the sale expected before the end 2021

Tesla will soon enter the Indian market. From July to August of this year, Tesla will test the Model 3 in India and is expected to go on sale before the end of the year. A source from Tesla told the media today that Tesla will initially assess the reaction of Indian metropolises to electric vehicles.

According to the report, Tesla “plans to set up showrooms in 3 to 4 cities including Mumbai, Bangalore, and Delhi.” In addition, Tesla may also consider using the “franchise model” to set up after-sales service workshops in India.

The source also told the media that in order to seek approval from the Association of Automotive Research of India (ARAI), Tesla “hopes to introduce Model 3 cars to India for testing between July and August.” At present, Tesla has started back-end work in order to “be ready to sell products before the end of 2021.”

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In February of this year, Tesla registered a company in India and took a step towards entering the Indian market. According to estimates at the time, Tesla may enter the Indian market as early as the middle of this year. People familiar with the matter also said at the time that Tesla initially planned to import and sell Model 3 electric vehicles in India.

In March, it was reported that Tesla was planning to cooperate with Tata Power, a power generation unit of India’s Tata Group, to establish an electric vehicle charging infrastructure in India in preparation for the launch of electric vehicles in India later this year.

Yesterday another source said that Tesla has begun recruiting leadership and senior positions in India, including sales and marketing directors, and human resources directors. Prior to this, Tesla had hired a senior legal counsel locally. In fact, India is not satisfied with Tesla selling electric cars in India but hopes to eventually produce electric cars in India.

Indian Transport Minister Nitin Gadkari said in early March that if Tesla promises to produce electric cars in India, India will provide incentives to ensure that Tesla’s production costs in India are more effective.

Last year, of the 2.4 million vehicles sold in India, electric vehicles accounted for only 5,000, because its charging infrastructure is not complete and the high cost of electric vehicles also discourages buyers.  In comparison, 20 million cars were sold in the Chinese market last year, and new energy passenger cars accounted for 1.25 million, accounting for more than one-third of Tesla’s global car sales.