Tesla, the US electric vehicle manufacturer, is planning to expand its service to India. This move comes as the company's global vehicle deliveries experienced a dip for the first time in almost four years. The company is reportedly considering Mumbai and New Delhi as potential showroom locations.
The initial plan is to establish a service hub and a showroom in each location, ranging between 3,000 and 5,000 square feet. Tesla has also started manufacturing right-hand-drive vehicles at its German facility.
These vehicles are intended for export to India. This development follows India's recent decision to reduce import duties on electric vehicles from 100% to 15%. This reduction applies to manufacturers who establish a factory and invest at least INR 41732.88 million.
Reports suggest that Tesla officials began scouting for locations last month. They have been in discussion with many real estate developers about potential locations for malls and high streets. The company aims to start construction as soon as possible and open the showrooms in 2024. In an earlier development, it was reported that Tata Electronics had signed an agreement with Tesla for semiconductor chips.
Tesla's expansion into India comes at a time when the company is grappling with the slower growth of electric vehicles in China and the United States, its two primary markets. Earlier this month, it was reported that Tesla had shelved a low-cost vehicle that was expected to drive the expansion of the mainstream market.
India is the world's third-largest auto market. It is expected to see a surge in demand for electric vehicles. In 2023, only 2% of all cars sold in India were electric vehicles. However, the government has projected that by 2030, 30% of all new cars sold in India will be electric. This makes India a promising market for Tesla's expansion plans.
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