Tesla is eyeing potential showroom locations in New Delhi and Mumbai as part of its plans to commence sales in India later this year. With global vehicle deliveries declining in the first quarter, Tesla is intensifying efforts to enter new markets, starting with showrooms spanning 3,000 to 5,000 square feet and service hubs in each city.
Production in Germany for Indian Market
Exporting Right-Hand Drive Cars
The electric carmaker has initiated production of right-hand drive vehicles at its German plant for export to India. This move aligns with India’s recent reduction of electric vehicle import taxes to 15% for automakers investing a minimum of $500 million and establishing a factory.
Anticipated Meeting with Modi
Investment Announcement Expected
Elon Musk is anticipated to meet Prime Minister Narendra Modi during his two-day visit to India. Discussions are expected to include investment announcements and potential collaborations. Tesla executives have been scouting locations and engaging with real estate developers to expedite showroom construction for a potential launch in 2024.
Market Dynamics and Growth Potential
Electric Vehicle Market in India
Despite slower growth in Tesla’s main markets, India presents significant growth potential for electric vehicles. With EVs comprising only 2% of India’s total car sales in 2023, the government aims to increase this share to 30% by 2030. Tesla’s entry into India aligns with these ambitions and reflects the increasing demand for electric vehicles in the country.
