Elon Musk’s Tesla, the global leader in electric vehicles (EVs), is actively scouting for land parcels in Satara, Maharashtra, to establish a Completely Knocked Down (CKD) assembly unit. This development marks a significant step in Tesla’s long-anticipated entry into the Indian EV market, aiming to boost local manufacturing and reduce costs for Indian consumers.
What is a CKD Assembly Unit and Why Does It Matter?
A CKD assembly plant imports vehicle components in parts and assembles them locally. This approach helps companies like Tesla avoid high import duties levied on fully built units (CBUs), making EVs more affordable and competitive in price-sensitive markets like India.
By setting up a CKD plant in Satara, Tesla plans to:
Lower vehicle prices by reducing import taxes
Accelerate local production and supply chain development
Create employment opportunities in Maharashtra’s industrial ecosystem
Align with the Indian government’s Make in India and EV promotion initiatives
Previous JV Talks and New Partnerships
Earlier, Tesla engaged in discussions with Hyderabad-based Megha Engineering for a joint venture to establish the CKD unit. However, these talks did not materialise. Subsequently, Tesla has been in talks with other Indian companies to form a partnership for the assembly plant, signalling its commitment to collaborate with domestic players.
Tesla’s India Market Entry: Showroom Launch in Mumbai
In March 2025, Tesla signed a five-year lease for its first showroom in Mumbai, covering approximately 4,003 square feet. This showroom will initially retail imported Tesla EVs, setting the stage for brand awareness and customer engagement ahead of local assembly.
The showroom lease reportedly costs around $446,000 for the first year, reflecting Tesla’s serious intent to establish a strong retail presence in India’s financial capital.
Why Maharashtra’s Satara is the Ideal Location
Satara, located in western Maharashtra, offers several advantages for Tesla’s assembly plant:
Proximity to Mumbai and Pune, two major industrial and automotive hubs
Well-developed infrastructure and connectivity for logistics
Supportive state government policies encouraging EV manufacturing
Availability of skilled workforce and industrial land parcels at competitive rates
This combination makes Satara an attractive destination for Tesla’s manufacturing ambitions.
Impact on India’s EV Ecosystem
Tesla’s move to set up a CKD assembly unit in India is expected to:
Boost EV adoption by making Tesla vehicles more affordable
Encourage other global EV makers to consider local assembly or manufacturing
Strengthen India’s position as an EV manufacturing hub in Asia
Stimulate investments in EV supply chains and charging infrastructure
Government’s Role and Support
The Indian government has been aggressively promoting EV manufacturing through incentives, tax benefits, and infrastructure development under schemes like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) and Production Linked Incentive (PLI) schemes.
Tesla’s local assembly aligns perfectly with these initiatives, potentially unlocking further benefits and easing regulatory processes.
What’s Next for Tesla in India?
Tesla is expected to officially launch its showroom in Mumbai soon, followed by the commencement of CKD assembly operations once the land acquisition and partnerships are finalised. This phased approach will help Tesla scale up gradually while adapting to India’s unique market dynamics.
Conclusion: Tesla’s EV Revolution in India is Just Beginning
Tesla’s exploration of land in Satara for an EV assembly plant signals a transformative phase for India’s electric vehicle industry. By combining cutting-edge technology with local manufacturing, Tesla is poised to accelerate India’s green mobility journey, making electric vehicles more accessible and affordable for Indian consumers.
As Tesla gears up to make a significant impact, Maharashtra-and India as a whole-stands to benefit from enhanced investment, job creation, and sustainable transportation solutions.