Tesla, led by Elon Musk, is set on scouting for land parcels in Satara, Maharashtra, for establishing a completely knocked down (CKD) electric vehicle assembly unit, according to a report by Business Standard. The move signifies the company’s intent to localise its operations in India and reduce overall import duties by assembling vehicles domestically. 

The CKD model involves importing vehicles in parts and assembling them in the destination country. This approach is commonly used to lower tariffs and enhance cost efficiency. Tesla’s decision to pursue a CKD unit in India is seen as a strategic move to make its products more competitively priced for the Indian market. Besides, it would mark Tesla’s first physical footprint in India, giving it a platform to serve domestic demand and potentially export to other markets in the region. 

Tesla had previously engaged in discussions with Hyderabad-based Megha Engineering for a potential joint venture. However, the talks did not materialise. Tesla was also reportedly in talks with other Indian companies to collaborate on the CKD initiative.  The development aligns with Tesla’s broader strategy to enter emerging markets through local assembly and manufacturing partnerships.