Before the much-anticipated entry of Tesla into India, Prashanth Menon, who has completed an impressive stint of nine years with the company, took leave from the post of Country Head for Tesla India. Menon played an integral role in the operations of Tesla in India, including setting up the office in Pune in 2021 and then inking some key retail leases early this year in major metropolitan areas such as Mumbai and Delhi.

Operations until a permanent replacement is appointed. Menon’s resignation is timely, when Tesla is set to introduce its electric vehicles (EVs) in India, the world’s third-largest auto market.

Tesla’s India Entry: Key Developments

Tesla’s bold push into India has picked up speed, particularly after recent bids to cut auto import duties. India cut the lofty 110% rate on EVs to only 15% for cars valued above $35,000, making it easier for Tesla to enter the market.

Early Reservations and New Model Launch

Moreover, the reimbursement activity for Model 3 reservations dating back to the year 2016 has begun, indicating that it is preparing for the upcoming launch and the introduction of new models. Tesla is also looking into semiconductor supply chains in India, like exploring important Indian companies, including Tata Electronics, CG Semi, Micron Technology Inc., while worst trade tensions continue between the US and China.

The decision to probe local chip supply chains comes as Tesla expands its strategy to build a more robust and independent infrastructure as it prepares for a successful launch in one of the world’s most promising electric vehicle markets. With this transition, Tesla’s intended entry into India is gaining momentum, even as the company struggles with leadership transitions at a critical juncture. The market continues to be on the cusp of tremendous growth in EV adoption, and Tesla’s attempts to forge local partnerships and establish supply chains demonstrate the company’s seriousness towards the Indian market.