Tesla Showroom In Delhi? Elon Musk's Company Begins Hunt - Report

Elon Musk 's Tesla is looking for a showroom in Delhi to open their India sales. According to a report by news agency Reuters, Tesla is rethinking about entering the Indian market after stalling its plans earlier this year.

As reported earlier, Musk had earlier revealed his plans to meet Prime Minister Narendra Modi during a trip to India in April. The plans, however, got cancelled. According to reports, however, Musk is still keen on investing  USD 2-3 Billion in the country. 

Tesla In India: Where Is The Showroom?

Tesla is reportedly in talks with DLF to help secure space in the National Capital Region, two sources who have direct knowledge of the situation told Reuters. A third source said it was not certain that Tesla's talks with India's biggest property developer will lead to a deal and the electric vehicle giant is also in conversation with others. 

One of the sources cited by the agency also said that Tesla is looking for 3,000 to 5,000 square feet (280-465 square metres) to create a consumer experience centre as well as a space three times larger for its delivery and service operations.

Tesla 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 source added. Foreign retailers including Japan's Uniqlo, Spain's Mango, and Britain's Marks and Spencer also have outlets in the Avenue Mall, where Tesla is looking to secure an 8,000 square feet showroom space, the second source said. Tesla's search is still "exploratory" and nothing has been finalised, the first source said. 

Tesla In India: The Tax Rate

It was not immediately clear whether Tesla would consider importing cars at a tax rate of as high as 100 per cent or if it would make investment commitments under India's new policy, which would allow it to import certain EVs at a lower rate of 15 per cent. After Tesla did not deliver on earlier investment plans, India's government is trying to relax certain provisions of its policy to attract automakers such as Hyundai Motor and Toyota which have expressed initial interest.

India's EV market is small, making up about 2% of total car sales of 4 million last year, but the government wants to increase the share to 30% by 2030. Tesla's showroom hunt comes as Musk's Starlink is also considering entering India after winning a lobbying battle against billionaire Mukesh Ambani over how New Delhi should allocate spectrum for the service.

(Reuters inputs)