Tesla aims to open showrooms in India before sales start
The carmaker wants to begin with a showroom and a service hub each in New Delhi and Mumbai, sources say
15 April 2024 - 18:06
byAgency Staff
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A Tesla model 3 car is seen at a showroom of the automaker. Picture:REUTERS/Edgar Su
New Delhi — US electric carmaker Tesla is looking at potential showroom locations in New Delhi and Mumbai before plans to begin sales in India later this year, two people familiar with the discussions said.
Tesla, of which global vehicle deliveries declined in the first quarter for the first time in nearly four years, is stepping up efforts to expand into new markets.
It wants to begin with a showroom of 280m2-465m2 as well as a service hub in each city, said one of the people familiar with the plans.
The carmaker has begun production of right-hand drive cars at its plant in Germany for export to India, separate sources have said.
India last month cut electric vehicle import taxes to 15% from as much as 100% for carmakers that invest at least $500m and set up a factory.
Tesla CEO Elon Musk is expected to make an investment announcement and meet Prime Minister Narendra Modi during a two-day visit to India from Sunday. Musk and Modi last met in New York in June.
Tesla executives started looking at locations last month and have held talks with several real estate developers as they look at potential high street and mall sites, one of the sources said. The person added that the company is keen to begin construction soon so that the showrooms can open in 2024.
The sources declined to be identified as discussions were confidential. Tesla did not immediately respond to a request for comment.
Tesla is grappling with slower growth for electric vehicles in its main markets of the US and China. It has cancelled a long-promised inexpensive car that investors have been counting on to drive mass market growth.
Demand for electric cars in India — the world’s third-largest car market — is expected to rapidly climb. EVs made up just 2% of India’s total car sales in 2023, but the government has said it wants 30% of all new car sales to be electric from 2030.
Meanwhile, the carmaker is set to lay off more than 10% of its workforce, according to a report in tech publication Electrek on Monday, citing an internal memo.
The world’s largest carmaker by market value had 140,473 employees globally by December, according to its latest annual report.
Tesla did not immediately respond to a request for comment.
Tesla, which is set to report its quarterly earnings on April 23, reported a decline in vehicle deliveries in the first quarter, its first in nearly four years and also below market expectations.
Meanwhile, the company has scrapped plans to produce an inexpensive car, abandoning one of Musk’s long-standing goals to make affordable EVs for the masses.
Tesla shares were down 0.8% in premarket trading on Monday.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Tesla aims to open showrooms in India before sales start
The carmaker wants to begin with a showroom and a service hub each in New Delhi and Mumbai, sources say
New Delhi — US electric carmaker Tesla is looking at potential showroom locations in New Delhi and Mumbai before plans to begin sales in India later this year, two people familiar with the discussions said.
Tesla, of which global vehicle deliveries declined in the first quarter for the first time in nearly four years, is stepping up efforts to expand into new markets.
It wants to begin with a showroom of 280m2-465m2 as well as a service hub in each city, said one of the people familiar with the plans.
The carmaker has begun production of right-hand drive cars at its plant in Germany for export to India, separate sources have said.
India last month cut electric vehicle import taxes to 15% from as much as 100% for carmakers that invest at least $500m and set up a factory.
Tesla CEO Elon Musk is expected to make an investment announcement and meet Prime Minister Narendra Modi during a two-day visit to India from Sunday. Musk and Modi last met in New York in June.
Tesla executives started looking at locations last month and have held talks with several real estate developers as they look at potential high street and mall sites, one of the sources said. The person added that the company is keen to begin construction soon so that the showrooms can open in 2024.
The sources declined to be identified as discussions were confidential. Tesla did not immediately respond to a request for comment.
Tesla is grappling with slower growth for electric vehicles in its main markets of the US and China. It has cancelled a long-promised inexpensive car that investors have been counting on to drive mass market growth.
Demand for electric cars in India — the world’s third-largest car market — is expected to rapidly climb. EVs made up just 2% of India’s total car sales in 2023, but the government has said it wants 30% of all new car sales to be electric from 2030.
Meanwhile, the carmaker is set to lay off more than 10% of its workforce, according to a report in tech publication Electrek on Monday, citing an internal memo.
The world’s largest carmaker by market value had 140,473 employees globally by December, according to its latest annual report.
Tesla did not immediately respond to a request for comment.
Tesla, which is set to report its quarterly earnings on April 23, reported a decline in vehicle deliveries in the first quarter, its first in nearly four years and also below market expectations.
Meanwhile, the company has scrapped plans to produce an inexpensive car, abandoning one of Musk’s long-standing goals to make affordable EVs for the masses.
Tesla shares were down 0.8% in premarket trading on Monday.
Reuters
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