Tesla is searching for suitable locations to set up showrooms in New Delhi and Mumbai, aiming to begin sales later this year, reported news agency Reuters.
The development comes ahead of Tesla founder Elon Musk’s trip to India later this month when he will meet Prime Minister Narendra Modi and announce his investment plans in the country.
Tesla is looking to explore new markets amid a global decline in Tesla’s vehicle deliveries in the first quarter, marking the first drop in nearly four years.
The plan involves establishing showrooms spanning between 3,000 to 5,000 square feet, along with service hubs in both cities. Right-hand drive cars for the Indian market are already in production at Tesla’s facility in Germany, according to separate sources.
India recently slashed import taxes on electric vehicles from as high as 100% to 15%, provided automakers invest a minimum of $500 million and establish a manufacturing plant in the country.
Elon Musk, Tesla’s CEO, is scheduled to visit India for two days, during which an investment announcement is anticipated, along with a meeting with Prime Minister Narendra Modi. Musk and Modi previously met in New York in June.
Tesla’s executives have been scouting locations since last month and have engaged in discussions with various real estate developers, eyeing potential sites on high streets and in malls. The company aims to commence construction soon to ensure the showrooms are operational by 2024.
While Tesla navigates slower growth in its main markets of the United States and China, demand for electric vehicles in India is expected to surge. Despite electric vehicles comprising only 2% of India’s total car sales in 2023, the government aims for electric vehicles to constitute 30% of all new car sales by 2030.
Sources familiar with the matter requested anonymity as discussions are confidential, and Tesla has not yet responded to requests for comment.
Source Agencies
