Is Tesla eyeing Indian market again? EV giant hunts for showroom space in Delhi

Tesla has resumed its search for showroom space in New Delhi, which is a key sign that the Elon Musk-led electric car manufacturer has started rethinking entering the Indian market after putting the company's investment plans in the country on hold earlier this year. Tesla was initially looking for space for its showrooms in New Delhi. However, the search was paused when the automaker put the investment plan on hold indefinitely. However, with the brand restarted the search could be a major move for the company to resume its India plan.

Tesla is currently in early-stage talks with real estate development company DLF to secure space in the national capital region, news agency Reuters reported. Besides that, the electric vehicle giant is also in discussions with others. Tesla is reportedly looking for 3,000 to 5000 square feet to create a consumer experience centre as well as a space three times larger for its delivery and service operations. The auto major is evaluating multiple locations including DLF's Avenue Mall in southern Delhi and the Cyber Hub office and retail complex in nearby Gurugram city, the report further added. It also said that in the Avenue Mall, Tesla is looking to secure an 8,000-square-foot showroom space. However, Tesla's search for showroom space is still at an exploratory level and nothing has been finalised so far.

Tesla's India plan: Developments so far

Tesla's India entry became a hot topic in the Indian auto industry earlier this year when the company's CEO Elon Musk said in April that he would meet Prime Minister Narendra Modi during a trip to the country. It was speculated that he was to potentially announce an investment of $2-3 billion in India, which would include setting up a local manufacturing and assembling plant for Tesla electric cars that would not only cater for the Indian market but would work as a global EV manufacturing hub as well. However, Musk called off his visit at the last moment after Tesla decided to sack 10 per cent of its global workforce amid falling sales.

While Tesla registered itself in India back in 2021 as Tesla India Motors in Karnataka and started a hiring spree, in the last two years, the automaker's entry into the country remained a chaotic subject.

Tesla wanted a concession in import duties for its electric cars in India so that it could initially start official business here by importing its cars. However, the Indian government has not provided any special concession, citing that it would be unfair to provide any such benefits to Tesla. Instead, the Indian government has always maintained its stance that the EV maker should set up a local manufacturing facility in the country. Later, the Indian government introduced a policy, under which Tesla was allowed to import certain electric cars at a lower rate of 15 per cent, given that it would set up a local manufacturing and assembling plant in the country.

After Tesla did not deliver on earlier investment plans, the Indian government relaxed certain provisions of its policy to attract automakers, to which carmakers such as Hyundai and Toyota expressed initial interest. However, Tesla's ‘to go or not to go’ strategy remained a major discussion point in the Indian market.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.