Is Tesla finally coming to India? Latest move suggests so
What's the story
Leading electric vehicle manufacturer Tesla has renewed its search for showroom locations in New Delhi and nearby areas. The development comes as a sign of a possible revival of the company's earlier stalled plans to enter the Indian market. Earlier this year, Tesla had started a similar search but it was put on hold due to reasons such as tax structure and other priorities of CEO Elon Musk.
Real estate negotiations
Tesla in talks with real estate firms for potential locations
Tesla is now in talks with real estate firm DLF and others to find a location in the National Capital Region (NCR). The company is said to be looking for a space between 3,000-5,000 square feet for a consumer experience center. It also requires an area three times bigger for delivery and service. Possible locations include DLF's Avenue Mall in South Delhi and Cyber Hub office/retail complex in Gurugram.
Market entry
Tesla's India entry: A timeline of events
Tesla's potential entry into the Indian market has been in the news since early 2024. Back in April, Musk had hinted at a possible meeting with Prime Minister Narendra Modi on his India visit. Speculations were rife about an investment announcement of $2-3 billion to set up a local manufacturing and assembly plant for Tesla electric cars. However, the plans were shelved when Musk canceled his trip after Tesla decided to lay off 10% of its global workforce due to declining sales.
Business setup
Tesla's registration and hiring in India
Despite the uncertainty over its market entry, Tesla had registered as Tesla India Motors in Karnataka in 2021. The company also started a hiring process at the time. However, its plea for import duty concessions on electric cars was denied by the Indian government. Instead, a policy was introduced to allow certain electric cars to be imported at a reduced 15% rate, if a local manufacturing and assembly plant was set up.