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Tesla Looking For Showroom Locations In Delhi And Mumbai. (Photo: Bleeping Computer)
Elon Musk, the CEO of Tesla, is expected to meet with Prime Minister Narendra Modi during his next trip to India. India recently reduced import taxes on electric vehicles.
Tesla is reportedly looking for suitable showroom locations in New Delhi and Mumbai as it prepares to launch sales in India later this year.
According to Motorbeam, the automotive company is looking into sites for showrooms ranging from 3,000 to 5,000 square feet, as well as service hubs in each city.
This move coincides with Tesla’s attempts to increase its market share, particularly because the company saw a drop in worldwide auto sales in the first quarter the first such dip in almost four years.
The company appears well-positioned to capitalise on the expanding Indian market for electric vehicles, as it is now producing right-hand drive cars at its plant in Germany for export to India, reports add.
India recently reduced import taxes on electric vehicles (EVs) from up to 100 per cent to 15 per cent for manufacturers who promise to invest at least $500 million and set up production facilities in the country.
Meanwhile, Elon Musk, the CEO of Tesla, is expected to meet with Prime Minister Narendra Modi during his next trip to India, where he is likely to make major investment announcements.
Tesla’s executives are said to have started looking for suitable sites for their showrooms since last month. They have reportedly been in contact with several real estate developers to investigate high street and mall locations. The firm is anxious to begin development so that the showrooms will open on time in 2024.
With slower growth rates seen in its two main markets of China and the United States, Tesla is having difficulties there even despite the electric car market’s bright future in India.
Reportedly, Tesla may have abandoned its aspirations to produce a low-cost vehicle, which was supposed to propel the company’s mass-market expansion.
The government has set high ambitions, aiming for 30 per cent of all new car sales to be electric by 2030, even though the adoption of electric vehicles in India is still very low, accounting for just 2 per cent of total car sales in 2023.
This suggests that the market for electric vehicles has a lot of room to develop, and it gives Tesla a chance to take a big lead in the Indian market.
To successfully establish its footprint and gain market share in India, the American automaker will have to overcome obstacles related to regulations, infrastructure and competition.
