Elon Musk's Tesla has reportedly resumed its search for a showroom in Delhi with DLF.
After stopping investment plans earlier this year, Elon Musk’s Tesla has resumed its search for showroom space in New Delhi, indicating a revived interest in the Indian market, according to news agency Reuters.
After pausing its plans to expand in India for several months, Tesla is again looking at locations such as the Cyber Hub in Gurugram and DLF’s Avenue Mall in southern Delhi. According to reports, the company is looking for a larger building for delivery and service operations as well as a 3,000–5,000 square foot area for a consumer experience center.
Additionally, Avenue Mall is home to international businesses like Mango, Uniqlo, and Marks & Spencer, which increases its allure for Tesla’s planned 8,000-square-foot showroom.
REVIVING INVESTMENT PLANS AMID CHALLENGES
Musk was scheduled to meet with Indian Prime Minister Narendra Modi earlier this year with the intention of announcing a $2–3 billion investment in India. But as Tesla struggled with declining sales and announced cutbacks that would effect 10% of its personnel, the visit was canceled. Given the high import levies of up to 100% on automobiles, Tesla’s increased emphasis on India begs the question of how it plans to proceed. Although Tesla has previously advocated for lower tariffs, it is said that the Indian government is currently working on policy changes to draw in automakers. These can include granting a 15% duty reduction on the importation of specific electric cars (EVs). The talks with DLF are still exploratory, and Tesla is also in discussions with others. A third source stated it is not certain that the talks would lead to a finalised deal. Tesla and DLF have not commented on the developments. The final decision may hinge on whether Tesla imports vehicles or commits to manufacturing in India under the revised policies.
