Tesla’s entry to India was a hot topic of discussion until a few months ago. The American carmaker was adamant on a lower tax rate for its fully-imported electric cars even without setting up a local manufacturing facility in India.
Earlier this year, Tesla’s efforts bore fruit when the Government of India brought in a new EV policy which allows certain companies to import EVs at a lower tax rate of 15% instead of the conventional 100 percent. Further, Tesla CEO and Founder, Elon Musk was supposed to meet Prime Minister of India, Narendra Modi during his visit to India in May this year which got cancelled due to Musk’s other commitments.
Since then Tesla’s venture into the Indian market has been on the back burner with investments put on hold. It has now come to light that Tesla is indeed serious about setting shop in India. Musk was reportedly planning to announce an investment worth $ 2-3 billion (approx Rs 1.70 – 2.54 lakh crore) during his visit to India. The American EV giant decided to take a step back when it sacked 10% of its staff amid falling sales.
Tesla looking for showroom space
As per a recent Reuters report, Tesla has resumed its search for showroom space in New Delhi. The report mentions that Tesla is now in early-stage talks with DLF to help secure space in the capital region. However, the report also says it is not certain that Tesla’s talks with India’s biggest property developer will lead to a deal and the electric vehicle giant is also in discussions with others.
Both Tesla and DLF are yet to respond to this development. Going into details, Tesla is reportedly looking for a space around 3,000 to 5,000 square feet (280-465 square metres) to create a consumer experience centre as well as a space three times larger for its delivery and service operations. Tesla is evaluating multiple locations including DLF’s Avenue Mall in southern Delhi and the Cyber Hub office and retail complex in nearby Gurugram city.
Foreign retailers including Japan’s Uniqlo, Spain’s Mango, and Britain’s Marks and Spencer, also have outlets in the Avenue Mall, where Tesla is looking to secure an 8,000 square feet showroom space. Tesla’s search is still “exploratory” and nothing has been finalised.
At this point in time, it is not clear whether Tesla will consider importing cars at the tax rate of as high as 100% or if it will make investment commitments under India’s new policy, which would allow it to import certain EVs at a lower rate of 15%.Tesla’s showroom hunt comes as Musk’s Starlink is also considering entering India after winning a lobbying battle against billionaire Mukesh Ambani over how New Delhi should allocate spectrum for the service.
(With inputs from Reuters)
