Tesla Scouts Locations for First Showrooms in India

Tesla is looking for locations to open its first showrooms in India. The company hopes to launch sales in the country later this year.

Tesla is considering potential locations in New Delhi, India’s capital, sources told Reuters. The company wants to start with a showroom of 3,000 to 5,000 square feet. Gradually, Tesla plans to open service centers in every city, according to the report. The manufacturer also wants to build a charging network throughout the country.

Tesla has long been planning to enter the Indian market. However, the company and the Indian government could not agree on the terms for a long time. Last year, the first serious hints of cooperation appeared after Elon Musk met with Prime Minister Narendra Modi.

Earlier, Drive Tesla reported that the company had begun test production of right-hand drive Model Y for the Indian market at its Giga Berlin. This was further confirmation that the company would soon announce investments in the country.

Last month, India cut import taxes on electric vehicles to 15% from 100% for automakers that invest at least $500 million and set up a manufacturing facility. This change opens the way for Tesla to enter the local market.

Last week, Musk said he would visit India next week to meet with Modi. He is expected to make an announcement on investment in the country during the two-day visit.

Tesla executives began looking for showroom locations last month, according to sources. They have held discussions with several developers looking at potential sites on popular streets and in shopping centers. The company aims to begin construction soon so that showrooms can open as early as this year.

India is an excellent potential market for electric vehicles. The country is the world’s third-largest auto market but EVs made up just 2 percent of India’s total car sales in 2023. Demand here is expected to grow rapidly. The Indian government has said it wants electric vehicles to make up 30% of all new car sales from 2030.

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