Tesla explores showroom locations in Delhi, Mumbai ahead of Elon Musk's India visit: Report

Tesla is searching for suitable locations to set up showrooms in New Delhi and Mumbai, aiming to begin sales later this year, according to media reports. The development comes ahead of Tesla founder Elon Musk's trip to India later this month when he will meet Prime Minister Narendra Modi and announce his investment plans in the country.

Ahead of Tesla CEO Elon Musk's visit to India, the US electric carmaker is looking at potential showroom locations in New Delhi and Mumbai ahead of plans to begin sales in India later this year, two people familiar with the discussions told media.

For the first time in over four years, Tesla's global car deliveries fell in the first quarter. As a result, the company is working harder to enter new markets.

According to one of the persons familiar with the plans, it intends to start with a service center and a showroom that are between 3,000 and 5,000 square feet (280–465 square meters) in each location.

According to unidentified sources, the carmaker has started producing right-hand drive vehicles at its German facility for sale to India. India lowered import duties on electric vehicles last month to 15% for manufacturers that establish a facility and invest at least $500 million.

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Musk is expected to make an investment announcement and meet Prime Minister Narendra Modi during a two-day visit to India. Musk and Modi last met in New York in June.

According to reports, Tesla officials began looking at places last month and have spoken with a number of real estate developers about possible locations for malls and high streets.

The firm is eager to start building as soon as possible so that the showrooms can open in 2024.

Tesla is struggling with the slower growth of electric vehicles in China and the United States, which are its two primary markets. This month, Reuters revealed that Tesla had canceled a low-cost vehicle that it had long claimed would propel the mass market's expansion.

India, the third-largest auto market in the world, is predicted to see a sharp increase in the demand for electric vehicles. In 2023, just 2% of all cars sold in India were electric vehicles (EVs).