Tesla Scouts Locations In New Delhi, Mumbai For Its India Showrooms

As Tesla finalises plans to sell cars in India later this year, the electric vehicle (EV) giant is reportedly considering various locations to set up showrooms in New Delhi and Mumbai.

A Reuters report, citing sources, said that the automaker plans to set up showrooms that span 3,000 to 5,000 square feet of area. Alongside, it is also mulling setting up service hubs in both the cities.

As per the report, the EV giant began scouting for showroom locations last month and has already held talks with several real estate developers. The company is said to be eyeing potential locations for the showrooms at high street and mall sites.

The company is said to be keen to commence construction of the showrooms “soon” to open them this year (2024) itself. 

The development comes amid reports that a Tesla team is expected to visit India later this month to zero in on the location for its potential $2 Bn manufacturing unit in the country.

The plant, which will likely come up in the next two years, will produce EVs for domestic and international markets. Meanwhile, the company has already commenced the production of right-hand drive cars at its plant in Germany. These cars will be exported to India later this year and will be sold at Tesla’s upcoming showrooms in the country. 

Tesla’s India push comes at a time when sales have either slowed or stagnated in its main markets – the US and China. On top of this, ongoing geopolitical tensions between Washington and Beijing have also forced the company to look at options beyond China to diversify its production capabilities. 

Amid this came the Centre’s recent EV policy. Last month, India introduced a policy under which EV companies would have to pay lower duty on imports if they agree to set up manufacturing facilities in the country.

Taxes on EV imports to India will be reduced to just 15% from as high as 100% previously if automakers invest a minimum of $500 Mn to establish a manufacturing plant in India.

Following this, Tesla boss Elon Musk will visit India later this month and meet Prime Minister Narendra Modi. He is expected to make an announcement about Tesla’s plans to invest and set up a new manufacturing facility in the country.

The developments come at a time when EV adoption has seen a big spurt in the past few years, especially in the two-wheeler category. However, experts opine that more electric cars will be sold by 2030 as costs come down. 

As per a report, EV sales in India are expected to soar to 2.7 Cr units by 2032.