Tesla eyes Delhi and Mumbai for its first India showroom locations, suggests report

Electric car manufacturer Tesla is eyeing potential showroom spots in New Delhi and Mumbai as it gears up to start selling its vehicles in India later this year, reported Reuters.

Tesla, which saw a drop in its global vehicle deliveries in the first quarter for the first time in nearly four years, is ramping up efforts to enter new markets. The company aims to kickstart its presence with showrooms spanning 3,000 to 5,000 square feet (280-465 square meters) and service centers in both cities, one of the sources revealed.

Reportedly, Tesla has commenced production of right-hand drive cars at its facility in Germany for export to India.

India recently slashed import taxes on electric vehicles to 15 percent from as high as 100% for automakers committing at least $500 million in investments and establishing a factory.

During a two-day visit starting Sunday, Tesla CEO Elon Musk is anticipated to announce investments and meet with Prime Minister Narendra Modi. Musk and Modi last convened in New York in June.

The report adds that Tesla executives began scouting locations last month and have engaged in discussions with various real estate developers, exploring potential sites in high streets and malls. The company is also eager to initiate construction promptly to ensure showroom openings by 2024.

Tesla is contending with sluggish growth in electric vehicle demand in its primary markets of the United States and China. Several media reports suggest the cancellation of a long-awaited affordable car, which investors anticipated would drive mass market expansion.

In India, the world's third-largest auto market, demand for electric cars is anticipated to surge. Electric vehicles constituted only two percent of India's total car sales in 2023, but the government aims for electric cars to represent 30 percent of all new car sales by 2030.

(With inputs from Reuters)