Tesla Resumes Hunt for Showroom Space in New Delhi

Tesla is once again exploring its potential to enter the Indian market, starting with New Delhi. The American electric vehicle behemoth is scouting for ideal locations to establish an experience center and operational facilities. This marks a revival of interest in the Indian market after earlier investment plans were put on hold earlier this year. While still in the infancy of entry into India, efforts by Tesla reflect the rising significance of the country in the global EV landscape.

Exploring South Delhi and Gurugram Showroom Space

Tesla has started negotiations with DLF, a leading real estate developer company in India, to get showroom space in New Delhi. The electric car manufacturer is said to be considering places like DLF Avenue Mall in South Delhi and the Cyber Hub office in Gurugram. The experience center said to display Tesla's new-generation electric vehicles, needs 3,000 to 5,000 square feet. Tesla is also in search of a larger facility, almost three times the size of the showroom, that would help in the operation and delivery of vehicles.

This comes a couple of months after the billionaire and Tesla CEO Elon Musk was scheduled to meet the Prime Minister of India, Narendra Modi for discussions on an investment ranging between USD 2-3 billion. However, the internal re-structuring of Tesla canceled his visit, but renewed scouting activities within the country indicate that the automobile manufacturer has not written off India.

Entry Strategy and Policy Considerations

Tesla's current search is stated to be "exploratory" with no confirmed decisions about business models for India. The entry strategy for Tesla seems to center around the Indian government's revised policy related to electric vehicle imports. It allows reduced import duties at 15 percent for certain electric vehicles, in place of the standard 100 percent tax. This has already drawn interest from global auto firms such as Toyota and Hyundai.

However, it will still be noted whether Tesla will import under the new policy or manufacture locally. Meanwhile, Musk-owned Starlink, Tesla's satellite internet service, is also scoping its entry into the Indian market, further widening Tesla's reach in the region.

Also Read: Toyota Urban Cruiser EV: Revolutionizing Electric SUVs

Conclusion

The fact that Tesla, with renewed interest in India starting from the search for showroom space in New Delhi, is an encouraging sign of the country's EV ecosystem. While these plans are still at the exploration stage, the development goes well with what can be done in India. It is a big market for electric vehicles. Government support policies and the iconic appeal of the Tesla brand can pave the way for a historic entry in the coming months. As Tesla takes the first steps, Indian consumers and the EV industry wait with bated breath for the next best thing.

Want more of the world of automotive–check out the social media pages of GoMotoring. Connect anywhere, Twitter, Facebook, and Instagram.