Elon Musk-led Tesla has recommenced its search for showroom locations in New Delhi, according to two sources who spoke to Reuters, indicating a potential reconsideration of its Indian market entry after previously suspending investment plans this year.
Following a temporary pause in its Indian showroom search, Tesla has now initiated preliminary discussions with DLF regarding space in the capital region, according to two sources with direct knowledge of the developments.
According to one source, Tesla seeks 3,000 to 5,000 square feet for a customer experience centre, plus additional space triple that size for service and delivery operations.
The company is considering various locations, including DLF’s Avenue Mall in southern Delhi and the Cyber Hub complex in Gurugram.
Earlier this year, Elon Musk indicated plans to meet Prime Minister Narendra Modi and potentially announce a $2-3 billion investment in India. The meeting was subsequently cancelled when Tesla announced staff reductions amidst declining sales.
A separate source indicated that the outcome of Tesla’s discussions with India’s largest property developer remains uncertain, with the company maintaining parallel discussions with other entities.
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The Avenue Mall, which houses international retailers like Uniqlo, Mango and Marks and Spencer, is being considered for an 8,000 square feet Tesla showroom, according to the second source.
The first source emphasised that Tesla’s search remains in preliminary stages without final decisions.
Questions remain regarding Tesla’s approach to vehicle imports, whether at the 100% tax rate or under India’s new policy allowing certain EVs at 15% import duty.
Following Tesla’s previous unrealised investment plans, the Indian government is considering policy adjustments to attract manufacturers like Hyundai Motor and Toyota, who have shown preliminary interest.
While India’s EV market currently represents approximately 2% of total car sales of 4 million annually, the government aims to increase this to 30% by 2030.
Tesla’s showroom search coincides with Musk’s Starlink considering Indian market entry.