Tesla is looking at potential showroom locations in New Delhi and Mumbai ahead of plans to begin sales in India later this year, two people familiar with the discussions said.
Tesla, which saw its global vehicle deliveries decline in the first quarter for the first time in nearly four years, is stepping up efforts to expand into new markets.
It wants to start with a showroom of 280m² to 465m² and a service hub in each city, said one of the people familiar with the plans.
The carmaker has begun production of right-hand drive cars at its plant in Germany for export to India, separate sources have said.
India last month cut electric vehicle import taxes to 15% from as much as 100% for carmakers that invest at least $500m (about R9,453,175,000) and set up a factory.
Tesla CEO Elon Musk is expected to make an investment announcement and meet Prime Minister Narendra Modi during a two-day visit to India from Sunday. Musk and Modi last met in New York in June.
Tesla executives started looking at locations last month and have held talks with several real estate developers as they look at potential high street and mall sites, one of the sources said. The person said the company is keen to begin construction soon so the showrooms can open later this year.
The sources declined to be identified as discussions were confidential. Tesla did not immediately respond to a request for comment.
Tesla is grappling with slower growth for electric vehicles in both its main markets in the US and China. Reuters reported this month Tesla has cancelled a long-promised inexpensive car that investors have been counting on to drive mass market growth.
Demand for electric cars in India — the world's third-largest auto market — is expected to rapidly climb. EVs made up only 2% of India's total car sales in 2023, but the government has said it wants 30% of all new car sales to be electric from 2030.
Tesla scouts for first India showroom locations
Image: Brandon Bell/Getty Images
Tesla is looking at potential showroom locations in New Delhi and Mumbai ahead of plans to begin sales in India later this year, two people familiar with the discussions said.
Tesla, which saw its global vehicle deliveries decline in the first quarter for the first time in nearly four years, is stepping up efforts to expand into new markets.
It wants to start with a showroom of 280m² to 465m² and a service hub in each city, said one of the people familiar with the plans.
The carmaker has begun production of right-hand drive cars at its plant in Germany for export to India, separate sources have said.
India last month cut electric vehicle import taxes to 15% from as much as 100% for carmakers that invest at least $500m (about R9,453,175,000) and set up a factory.
Tesla CEO Elon Musk is expected to make an investment announcement and meet Prime Minister Narendra Modi during a two-day visit to India from Sunday. Musk and Modi last met in New York in June.
Tesla executives started looking at locations last month and have held talks with several real estate developers as they look at potential high street and mall sites, one of the sources said. The person said the company is keen to begin construction soon so the showrooms can open later this year.
The sources declined to be identified as discussions were confidential. Tesla did not immediately respond to a request for comment.
Tesla is grappling with slower growth for electric vehicles in both its main markets in the US and China. Reuters reported this month Tesla has cancelled a long-promised inexpensive car that investors have been counting on to drive mass market growth.
Demand for electric cars in India — the world's third-largest auto market — is expected to rapidly climb. EVs made up only 2% of India's total car sales in 2023, but the government has said it wants 30% of all new car sales to be electric from 2030.
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