Tesla has reignited its efforts to enter the Indian market by resuming its search for a showroom space in New Delhi. This marks a significant shift after the company put its investment plans in the country on hold earlier this year.
Sources close to the matter indicate that Tesla is in early-stage discussions with DLF, India’s largest property developer, to secure prime retail locations in the nation’s capital. Tesla is reportedly exploring multiple locations, with a focus on prominent commercial hubs in New Delhi and the nearby city of Gurugram.
These include DLF’s Avenue Mall in southern Delhi and the Cyber Hub retail complex in Gurugram. The company is seeking a 3,000 to 5,000 square-foot space for a consumer experience center, alongside a larger facility for delivery and service operations. (via HT Auto)
In addition, Tesla is considering securing an 8,000 square-foot showroom in Avenue Mall, where other international brands such as Uniqlo, Mango, and Marks & Spencer already have a presence.
Despite these explorations, Tesla’s search remains in the exploratory phase, with no final agreements in place.
Tesla’s renewed interest in India comes after India’s government, aiming to boost electric vehicle adoption, has introduced a policy that offers reduced import duties for automakers that commit to local production investments of at least $500 million over three years.
This policy could serve as a pivotal factor in Tesla’s decision-making process as it evaluates its entry strategy.
Earlier this year, Tesla’s plans to establish a manufacturing and sales presence in India were shelved following operational challenges, including a 10% global staff reduction. Musk’s planned visit to meet Prime Minister Narendra Modi, which was expected to culminate in an investment announcement worth $2-3 billion, was also canceled.
However, the revival of Tesla’s showroom search indicates a potential re-engagement with India’s leadership and market dynamics.
