Elon Musk’s Tesla is reportedly scouting land in Satara, Maharashtra, India, to establish a completely knocked down (CKD) unit for assembling electric vehicles. This move aligns with Tesla’s broader plan to enter the Indian market by April 2026.
Tesla, the renowned electric vehicle manufacturer led by Elon Musk, is reportedly exploring land parcels in Satara, a district in the state of Maharashtra, India, for setting up a completely knocked down (CKD) assembly unit. The move signals a significant step toward the company’s planned entry into the Indian market, expected by April 2026.
Based in the United States, Tesla Inc. designs, manufactures, and sells electric vehicles, energy storage solutions, and solar technology. The company is globally recognized for pioneering advancements in clean energy mobility and is now actively preparing to establish its footprint in India.
According to a report by Business Standard dated May 12, 2025, Tesla has been in discussions with several Indian entities, including an earlier attempt to partner with Hyderabad-based Megha Engineering for a joint venture, which did not materialize. Talks with other Indian firms have also been underway to set up the CKD unit, which involves importing vehicle parts for local assembly to minimize import duties.
Completely Knocked Down (CKD) units allow automakers to ship vehicle components instead of fully built cars, making it a strategic choice in markets with high import tariffs. This approach enables companies like Tesla to offer competitive pricing while complying with domestic manufacturing regulations.
In a related development, Tesla signed a five-year lease for a 4,003 square feet retail space in Mumbai, intended to house its first showroom in India. The lease, worth approximately USD 446,000 for the first year, marks the company’s initial commercial presence in the country.
Additionally, Tesla has posted job openings across major Indian cities including Mumbai, Delhi, and Pune, further underscoring its hiring efforts in anticipation of launching operations. Despite these moves, Tesla’s India operations faced a shift as Prashanth Menon, the company’s country head, stepped down after nine years. As per Bloomberg, Tesla’s China team will oversee India operations in the interim.
Tesla’s potential investment in Satara for a CKD plant aligns with India’s growing push for electric mobility and manufacturing localization. While the final decision remains to be confirmed, this initiative may become a cornerstone of Tesla’s strategy in one of the world’s largest automotive markets.
