Elon Musk’s Tesla has restarted its search for showroom space in New Delhi, signaling renewed interest in entering the Indian market after earlier investment plans were shelved. Two sources familiar with the matter told Reuters that Tesla is in preliminary talks with DLF, India’s largest property developer, to secure a location in the capital region.
This marks the first significant step by Tesla to re-engage with India after pausing its efforts earlier this year. Musk had initially planned to visit India in April, potentially to announce a USD 2-3 billion investment, but the trip was canceled amid company-wide layoffs and declining sales.
Tesla is reportedly looking for a 3,000 to 5,000-square-foot space for a consumer experience center and a larger area for vehicle delivery and service operations. Potential locations under consideration include DLF’s Avenue Mall in southern Delhi and the Cyber Hub in Gurugram. However, a third source cautioned that discussions remain exploratory, and no deal has been finalised.
Foreign retailers such as Uniqlo, Mango, and Marks & Spencer already have outlets in Avenue Mall, where Tesla may seek an 8,000-square-foot showroom.
Tesla’s reentry into the Indian market raises questions about its approach to import duties, which can reach as high as 100%. India’s government recently introduced a new policy allowing certain EV imports at a reduced tax rate of 15%, provided automakers commit to local investments. It remains unclear whether Tesla will take advantage of this provision or explore other avenues for market entry.
India’s electric vehicle market is still nascent, accounting for just 2% of the country’s total car sales of 4 million last year. However, the government aims to increase this share to 30% by 2030, attracting interest from global automakers such as Hyundai and Toyota.
Tesla’s renewed interest coincides with another Musk-led initiative: Starlink, which is eyeing India’s market after resolving regulatory challenges. These developments suggest Tesla and its affiliated ventures are positioning themselves for long-term opportunities in one of the world’s fastest-growing economies.