Tesla has reportedly rekindled its interest in the Indian market by resuming its search for showroom space in New Delhi. Having paused its investment plans earlier this year, the electric vehicle giant is currently in early-stage talks with DLF to secure prime locations in the capital region.
Reuters reported that Tesla is exploring various options, including DLF's Avenue Mall and Cyber Hub, for its showroom and service center. While the search is still in its early stages, it signals the company's renewed commitment to the Indian market.
In 2023, Tesla CEO Elon Musk expressed confidence about entering the Indian market, stating, "Tesla will be in India, and we'll do so as soon as humanly possible." He added that the company hoped to make an announcement soon but emphasized the importance of not rushing into any declarations. Musk indicated the likelihood of a significant investment and relationship being established in the future.
Musk had planned to meet with Indian Prime Minister Narendra Modi in April to potentially announce a significant investment of US$2 to US$3 billion in India. However, he canceled his visit shortly before the scheduled meeting after Tesla decided to lay off 10% of its workforce due to declining sales. This decision raised concerns about Tesla's market strategy, particularly as the company faces challenges in key regions like the US and China.
The anticipated trip was expected to coincide with discussions about establishing a new factory in India as the country seeks to enhance its position in the global electric vehicle market. Reports indicated that Tesla had been lobbying for reduced import taxes on electric vehicles, which currently can reach as high as 100%. The Indian government has proposed a new policy that would lower these taxes to 15% for manufacturers willing to invest at least US$500 million and set up local production facilities.
Despite Musk's canceled visit, Tesla's renewed search for showroom locations in New Delhi indicates the company's continuing interest in entering the Indian market.
