Tesla restarts search for New Delhi showroom with India's DLF, sources say

DLF

11/12/2024 03:00

(Repeats from DEC 10, with no changes to text)

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      Tesla's India showroom search restarts, sources say
    

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      New Delhi one of markets being considered for Tesla
    

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      Musk in April called off plans to visit India, meet Modi
    

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      Billionaire also wants to launch Starlink in India
    

  
    By Aditi Shah and Aditya Kalra
       NEW DELHI, Dec 10 (Reuters) - Elon Musk's Tesla has
resumed its search for showroom space in New Delhi, two sources
told Reuters, in the first sign it is rethinking entering the
Indian market after putting its investment plans on hold earlier
this year.
    Musk said in April he would meet Indian Prime Minister
Narendra Modi during a trip where he was to potentially announce
an investment of $2-3 billion in India. However, he called off
his visit at the last moment after Tesla decided to sack 10% of
its staff amid falling sales.
    Tesla  TSLA.O , which had paused its search for a showroom
in India in recent months, is now in early-stage talks with DLF
 DLF.NS  to help secure space in the capital region, said the
two sources, who have direct knowledge of the situation.
    A third source said it is not certain that Tesla's talks
with India's biggest property developer will lead to a deal and
the electric vehicle giant is also in discussions with others.
    Tesla and DLF did not respond to requests for comment.
    One of the sources said Tesla is looking for 3,000 to 5,000
square feet (280-465 square metres) to create a consumer
experience centre as well as a space three times larger for its
delivery and service operations.
    Tesla is evaluating multiple locations including DLF's
Avenue Mall in southern Delhi and the Cyber Hub office and
retail complex in nearby Gurugram city, the source added.
    Foreign retailers including Japan's Uniqlo  9983.T , Spain's
Mango and Britain's Marks and Spencer  MKS.L  also have outlets
in the Avenue Mall, where Tesla is looking to secure an 8,000
square feet showroom space, the second source said.
    Tesla's search is still "exploratory" and nothing has been
finalised, the first source said.
    It was not immediately clear whether Tesla will consider
importing cars at the tax rate of as high as 100% or if it will
make investment commitments under India's new policy, which
would allow it to import certain EVs at a lower rate of 15%.
    After Tesla did not deliver on earlier investment plans,
India's government is trying to relax certain provisions of its
policy to attract automakers such as Hyundai Motor  005380.KS 
and Toyota  7203.T  which have expressed initial interest.
    India's EV market is small, making up about 2% of total car
sales of 4 million last year, but the government wants to
increase the share to 30% by 2030.
    Tesla's showroom hunt comes as Musk's Starlink is also
considering entering India after winning a lobbying battle
against billionaire Mukesh Ambani over how New Delhi should
allocate spectrum for the service. 

 (Reporting by Aditi Shah and Aditya Kalra; Editing by Alexander
Smith)
 ((aditi.shah@tr.com; +91-11-4954 8023, +91-11-3015 8023;
Reuters Messaging: twitter: @aditishahsays))