Tesla resumes search for New Delhi showroom in talks with DLF: Report

ELON MUSK’s Tesla has restarted its search for showroom space in New Delhi, according to two sources cited by Reuters.

The move signals a potential shift in Tesla's approach to entering the Indian market after earlier putting investment plans on hold.

In April, Musk was scheduled to meet Indian prime minister Narendra Modi and possibly announce a £1.57–£2.36 billion investment in the country. However, the visit was cancelled after Tesla decided to lay off 10 per cent of its workforce amid declining sales.

Tesla had paused its search for a showroom in India earlier this year but is now reportedly in preliminary discussions with DLF, one of India’s largest property developers, to secure space in the capital region, the sources said to Reuters.

A third source noted that while Tesla is exploring options with DLF, the discussions are not yet final, and the company is also in talks with other property developers.

One source stated that Tesla is seeking 3,000 to 5,000 square feet to set up a consumer experience centre and an additional larger space for delivery and service operations. Locations being evaluated include DLF’s Avenue Mall in South Delhi and the Cyber Hub complex in Gurugram.

Another source added that Tesla is eyeing an 8,000 square feet space in the Avenue Mall, which also houses outlets of brands like Uniqlo, Mango, and Marks & Spencer.

The search remains "exploratory," and no final decisions have been made, according to the first source.

It is unclear whether Tesla plans to import cars at India’s high tax rate of up to 100 per cent or take advantage of a new policy allowing imports at a reduced rate of 15 per cent for certain electric vehicles.

India’s government is seeking to attract automakers like Tesla, Hyundai, and Toyota by relaxing provisions in its EV policy. The country’s electric vehicle market currently accounts for 2 per cent of total car sales but is targeting a 30 per cent share by 2030.

Meanwhile, Musk’s satellite venture, Starlink, is also exploring entry into India after resolving a regulatory dispute over spectrum allocation with Mukesh Ambani’s Reliance Group.

(With inputs from Reuters)