Tesla is reportedly in the process of identifying suitable locations to establish showrooms in New Delhi and Mumbai, with plans to initiate sales later this year, according to a report by Reuters.
This initiative precedes the anticipated visit of Tesla's CEO, Elon Musk, to India later this month. During his visit, Musk is expected to meet with Prime Minister Narendra Modi and unveil the company's investment strategy for the Indian market.
The move comes amid a global decline in Tesla's vehicle deliveries during the first quarter, marking the first decrease in nearly four years. As part of its strategy, Tesla aims to set up showrooms spanning between 3,000 to 5,000 square feet, along with service hubs, in both cities. Sources mentioned in the report suggest that right-hand drive cars tailored for the Indian market are already being manufactured at Tesla's facility in Germany.
India recently reduced import taxes on electric vehicles from as high as 100% to 15%, contingent upon automakers investing a minimum of $500 million and establishing manufacturing plants in the country.
During his two-day visit to India, Musk is expected to make an investment announcement and hold discussions with PM Modi. This visit follows their previous meeting in New York in June.
Tesla's executives have been actively scouting locations since last month, engaging in discussions with various real estate developers to identify potential sites on high streets and in malls. The company aims to expedite construction to ensure that the showrooms become operational by 2024.
Despite facing slower growth in its primary markets of the United States and China, Tesla anticipates a surge in demand for electric vehicles in India. Although electric vehicles accounted for only 2% of India's total car sales in 2023, the government aims to increase this figure to 30% of all new car sales by 2030.
