Tesla resumes search for New Delhi showroom with DLF's help, eyes India entry amid EV push: Report

Elon Musk’s Tesla has restarted efforts to establish a presence in India, exploring options for showroom space in New Delhi, according to two Reuters sources familiar with the matter. This move signals a potential re-entry into the Indian market after the electric vehicle (EV) giant paused its investment plans earlier this year.

Tesla had previously shelved plans to enter India, with Musk cancelling an anticipated April visit where he was expected to announce a $2-3 billion investment. The cancellation coincided with Tesla’s decision to cut 10% of its workforce amid slowing sales.

Tesla is reportedly in discussions with DLF, India’s largest property developer, to secure showroom and operational spaces in the Delhi-NCR region. The company is exploring multiple locations, including DLF Avenue Mall in southern Delhi and Cyber Hub in Gurugram.

According to the Reuters report, one source revealed that Tesla is searching for a 3,000 to 5,000 square feet showroom to serve as a consumer experience centre, alongside a larger facility for vehicle deliveries and servicing.

“Tesla’s search is still exploratory and nothing has been finalised,” the source told Reuters, adding that the company is also in talks with other developers.

Tesla’s entry into India remains fraught with challenges, particularly around import tariffs. It is unclear whether the company will proceed with imports at India’s high tax rate of up to 100% or capitalise on new government policies allowing reduced duties of 15% on certain EV imports.

The Indian government has been adjusting its policies to attract global automakers, with companies like Hyundai and Toyota expressing interest.

India’s EV market remains small, accounting for just 2% of last year’s 4 million car sales, but the government aims to grow this share to 30% by 2030. Tesla’s move comes at a time when Starlink, another Musk-led venture, is also exploring opportunities in India following regulatory wins over Mukesh Ambani’s telecom giant.

If successful, Tesla’s entry into India could catalyse growth in the country’s nascent EV market. The search for showroom space comes as other global retailers, including Uniqlo, Mango, and Marks & Spencer, establish footholds in prime locations like DLF Avenue Mall.