Tesla Scouting for Showroom Sites in Delhi, Mumbai

Tesla is reportedly looking for suitable showroom locations in New Delhi and Mumbai as it prepares to launch sales in India later this year. the automotive company is looking for sites for showrooms and service hubs ranging from 3,000 to 5,000 square feet in each city. The move is consistent with Tesla’s efforts to increase its market share, especially as the company saw worldwide auto sales decline for the first quarter in nearly four years. The company appears well-positioned to capitalize on the expanding Indian market for electric vehicles, as it is now manufacturing right-hand drive cars at its plant in Germany for export to India, reports added.

India has recently reduced the import tax on electric vehicles (EVs) from 100 percent to 15 percent for manufacturers promising to invest at least $500 million and set up manufacturing facilities in India. Meanwhile, Tesla CEO Elon Musk is expected to meet Prime Minister Narendra Modi during his upcoming visit to India, where he is likely to announce a major investment. Tesla executives are said to have started looking for suitable sites for their showrooms since last month. He is said to be in touch with several real estate developers to explore high street and mall locations. The firm is keen to start development so that the showroom opens in time for 2024.

Despite the bright future of the electric car market in India, Tesla is facing difficulties there, with its two main markets of China and the United States witnessing slow growth.

According to the report, Tesla may have abandoned its aspirations to create a low-cost vehicle, which was to drive the company’s mass-market expansion. With the government aiming to make 30 percent of all new car sales electric by 2030, adoption of electric vehicles in India is still very low, accounting for just 2 percent of total car sales in 2023. This indicates that there is a lot of room for growth in the electric vehicle market and gives Tesla a chance to take a big lead in the Indian market. To successfully establish its footprint and gain market share in India, the American automaker will have to overcome barriers related to regulations, infrastructure and competition.