Tesla previously requested that the Indian government reduce the duty on imported cars. In this year's financial budget, the import duty has been decreased from 125 percent to 70 percent. The company also plans to lower the prices of its cars to compete with BYD.

Tesla has selected locations for two showrooms in the Indian cities of New Delhi and Mumbai, moving closer to its long-delayed plans to sell its electric cars in the country, sources familiar with the matter said.

With Tesla finally gearing up to enter India later this year, the Elon Musk-run electric vehicle (EV) major is set to take a "top-down approach" - launch expensive models in the country first and then follow it up with the cheaper vehicles.