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    Home » Tesla Resumes Showroom Search in New Delhi Amid Renewed India Plans

    Tesla Resumes Showroom Search in New Delhi Amid Renewed India Plans

    Kanika SharmaBy Kanika SharmaDecember 11, 2024 Technology No Comments2 Mins Read
    Tesla

    Tesla Resumes Search for Showroom Space in New Delhi

    Tesla has reignited efforts to establish a showroom in New Delhi, according to two sources, signalling a renewed interest in the Indian market. This follows the company’s earlier decision to pause its plans after shelving investment discussions earlier this year.

    Previous Investment Plans Put on Hold

    In April, Elon Musk had planned a visit to India, during which he was expected to meet Prime Minister Narendra Modi and announce an investment of $2-3 billion. However, Musk cancelled the trip abruptly as Tesla faced declining sales and announced a 10% staff reduction globally.

    Since then, Tesla has been cautious about its Indian expansion. Recent developments indicate the electric vehicle (EV) giant has resumed discussions, specifically with property developer DLF, to secure space in the Delhi region. Sources familiar with the situation mentioned these are early-stage negotiations, with no guarantees of a finalised deal.

    Exploring Prime Locations for Tesla Showroom and Service Centres

    Tesla is reportedly scouting properties, including DLF’s Avenue Mall in southern Delhi and the Cyber Hub complex in nearby Gurugram. The company seeks 3,000 to 5,000 square feet for a consumer experience centre and a much larger space for delivery and service operations.

    The Avenue Mall, which houses outlets for international brands like Uniqlo, Mango, and Marks & Spencer, is one of the sites under consideration. According to one source, Tesla is interested in acquiring an 8,000-square-foot space at the mall.

    Despite this renewed activity, Tesla’s search is still in an “exploratory” phase. It remains unclear whether Tesla will proceed with importing vehicles at India’s current high tax rate of up to 100% or take advantage of a new government policy allowing reduced import duties of 15% for certain EVs.

    India’s EV Market and Policy Changes

    India’s government is keen to attract automakers to the growing EV sector. While EVs currently account for just 2% of the 4 million cars sold annually, authorities aim to boost this share to 30% by 2030. Revised policies are being introduced to encourage investment from global players like Hyundai and Toyota.

    Tesla’s return to discussions aligns with these efforts and comes amid its broader ambitions in India. Musk’s other venture, Starlink, is also considering entering the Indian market after resolving a regulatory standoff with Mukesh Ambani over spectrum allocation.

    With inputs from Reuters

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    • Kanika Sharma
      Kanika Sharma

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