Tesla Targets New Delhi and Mumbai for First Showroom Locations in India

The production of right-hand drive cars for India has already started at the Tesla plant in Germany

Elon Musk’s Tesla is considering potential showroom locations in New Delhi and Mumbai as it prepares to enter the Indian market later this year, as per Reuters.

Facing its first quarterly decline in global vehicle deliveries in almost four years, Tesla is making efforts to penetrate new markets.

With plans to establish showrooms, the EV maker aims for spaces spanning 3,000 to 5,000 square feet (280 to 465 square meters).
Moreover, according to multiple reports, the company is considering establishing service hubs in both cities.

Tesla initiated the search for showroom locations last month and has already engaged in discussions with numerous real estate developers. The company is assessing high street and mall sites for its potential showroom sites.

The EV giant plans to kick off construction of the showrooms soon, aiming to open them within this year.

Musk to announce Tesla's plans to invest in and establish a new manufacturing facility in India. (Source: Tesla)
Dual Motor All-Wheel Drive Tesla Model 3 (Source: Tesla)

Telsa’s Plans for India

Tesla CEO Elon Musk will visit India this Sunday and engage in discussions with Prime Minister Narendra Modi. During the visit, Musk might announce Tesla’s plans to invest in and establish a new manufacturing facility in India.

The plant, expected to be operational within the next two years, will manufacture electric vehicles for domestic and international markets.

Meanwhile, the production of right-hand drive cars has already begun at the company’s plant in Germany. Later this year, the company will export these cars to India and make them available for purchase at Tesla’s soon-to-be-opened showrooms in the country.

Although Tesla is experiencing sluggish growth in its primary markets of the United States and China, it is expecting a surge in demand for electric cars in India.

Amid this situation, the Indian government recently launched its new EV policy. India introduced a policy last month, offering EV companies reduced import duties if they agree to establish manufacturing facilities within the country.

With a minimum investment of $500 million in a manufacturing plant in India, automakers can benefit from a decrease in taxes on EV imports, down to just 15% from previously as high as 100%.

Tesla seeks to enter new growing EV markets like India. (Representative Image: Unsplash)
Electric vehicle charging (Representative Image: Unsplash)

India’s Demand for EVs

India is the world’s third-largest auto market and expects a rapid increase in demand for electric cars. However, in 2023, electric vehicles accounted for only 2% of India’s overall car sales.

Despite this, the government aims to accelerate the adoption of EVs, targeting 30% of all new car sales to be electric by the year 2030.

Amid slower growth in its primary market, Tesla seeks to enter new markets like India, expecting a surge in demand for EVs in these regions.