Tesla eyes Mumbai: showroom likely to open in 2024

These vehicles are for export to India. This development follows India's recent decision to reduce import duty on electric vehicles from 100% to 15%. This deduction is applicable to manufacturers who set up a factory and invest at least Rs 41732.88 million.

Reports suggest that Tesla executives started scouting locations last month. They are in discussions with several real estate developers about possible locations for the mall and high street. The company aims to start construction as soon as possible and open showrooms in 2024. In an earlier development, it was reported that Tata Electronics had signed a deal with Tesla for semiconductor chips.

Tesla's expansion in India comes at a time when the company is grappling with slow growth of electric vehicles in China and the United States, its two primary markets. Earlier this month, it was reported that Tesla had taken the wraps off a low-cost vehicle that was expected to expand into the mainstream market.

India is the third largest auto market in the world. This is expected to see an increase in demand for electric vehicles. In 2023, only 2% of all cars sold in India will be electric vehicles. However, the government has estimated that 30% of all new cars sold in India will be electric by 2030. This makes India a promising market for Tesla's expansion plans.