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Home Electric Vehicles

Tesla explores prime locations for showrooms in India

David Ijaseun by David Ijaseun
April 15, 2024
in Electric Vehicles
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Tesla [Source: Investopedia]

Tesla [Source: Investopedia]

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Tesla, American electric car giant is reportedly scouting potential showroom locations in New Delhi and Mumbai as part of its plans to commence sales in India later this year.

This move comes as Tesla aims to expand its global footprint despite facing a decline in global vehicle deliveries in the first quarter, marking the first drop in nearly four years.

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Sources familiar with the discussions told Reuters that Tesla is eyeing showrooms ranging from 3,000 to 5,000 square feet (280-465 square meters) in size, along with service hubs in each city. Additionally, the company has commenced production of right-hand drive cars at its German plant for export to India, as per separate sources.

India recently slashed electric vehicle import taxes to 15% from levels as high as 100% for automakers committing to invest at least $500 million and establish a factory. This move aligns with Tesla’s strategy to penetrate the Indian market, with Elon Musk, Tesla’s Chief Executive expected to make an investment announcement and meet Prime Minister Narendra Modi during a two-day visit starting Sunday. Musk and Modi last met in New York in June.

Tesla executives have been actively exploring potential locations since last month, engaging in discussions with various real estate developers for high street and mall sites. The company is eager to commence construction promptly to ensure that the showrooms can open in 2024.

Despite facing slower growth in its key markets of the United States and China, Tesla remains optimistic about the prospects in India. While electric vehicles constituted only 2% of India’s total car sales in 2023, the government aims to have 30% of all new car sales be electric by 2030, indicating a significant growth potential in the Indian market.

Read more on Honda partners Nissan to compete against Tesla, BYD, other EV rivals

Tags: electric vehiclesTesla

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