According to two Reuters sources with knowledge of the situation, Elon Musk’s Tesla has recommenced its attempts to build a presence in India and is looking into possibilities for showroom space in New Delhi. The electric vehicle (EV) behemoth halted its investment plans earlier this year, but this action suggests a possible re-entry into the Indian market.
Prior to Musk canceling an April visit in which he was supposed to announce a $2–3 billion investment, Tesla had canceled its intentions to enter India. Due to declining sales, Tesla decided to lay off 10% of its employees at the same time as the cancellation.
According to reports, Tesla is negotiating to lease showroom and operating space in the Delhi-NCR area with DLF, the biggest real estate developer in India. The business is looking at a number of sites, such as Gurugram’s Cyber Hub and southern Delhi’s DLF Avenue Mall.
The source told Reuters, “Tesla is in discussions with other developers and their search is still exploratory and nothing has been finalized.”
There are still several obstacles to overcome before Tesla may enter India, especially with regard to import taxes. It is unknown if the corporation will take advantage of new government rules that allow reduced taxes of 15% on some EV imports or continue with imports at India’s high tax rate of up to 100%.
In an effort to draw in international automakers, the Indian government has been changing its regulations; Hyundai and Toyota have shown interest.
Although only 2% of India’s 4 million automobile sales last year came from EVs, the government wants to increase this percentage to 30% by 2030. Tesla’s action coincides with Starlink, another Musk-led business, looking at prospects in India after regulatory victories against Mukesh Ambani’s telecom conglomerate.