Tesla in search for India outlet
• Group looking to open India stores this year, but factory job cuts still on cards
US electric carmaker Tesla is looking at potential showroom locations in New Delhi and Mumbai ahead of plans to begin sales in India later this year, two people familiar with the discussions said.
Tesla, which saw global vehicle deliveries decline in the first quarter for the first time in nearly four years, is stepping up efforts to expand into new markets.
It wants to begin with a showroom of 280m²-465m² as well as a service hub in each city, one of the people familiar with the plans said.
The vehicle manufacturer has begun production of right-hand drive cars at its plant in Germany for export to India, separate sources have said.
India last month cut electric vehicle import taxes to 15% from as much as 100% for automakers that invest at least $500m and set up a factory.
Tesla CEO Elon Musk is expected to make an investment announcement and meet prime minister Narendra Modi during a two-day visit to India from Sunday. Musk and Modi last met in New York in June.
Tesla executives started looking at locations last month and have held talks with several real estate developers as they look at potential high street and mall sites, one of the sources said. The person added that the company was keen to begin construction soon so that the showrooms can open in 2024.
The sources declined to be identified as discussions were confidential. Tesla did not immediately respond to a request for comment.
Tesla is grappling with slower growth for electric vehicles in both its main markets — the US and China. Reuters reported this month that Tesla had cancelled a long-promised inexpensive car that investors had been counting on to drive mass market growth.
Demand for electric cars in India — the world’s third-largest auto market — is expected to climb rapidly. EVs made up just 2% of India’s total car sales in 2023, but the government has said it wants 30% of all new car sales to be electric from 2030.
Meanwhile, the carmaker is set to lay off more than 10% of its workforce, according to a report in tech publication Electrek on Monday, citing an internal memo.
The world’s largest carmaker by market value had 140,473 employees globally as of December, according to its latest annual report.
In a sign of further instability at the company, Tesla's senior vicepresident Drew Baglino, in charge of battery development, and Rohan Patel, vice-president for public policy and business development, announced their exits from the company on Monday.
Tesla, which is set to report its quarterly earnings on April 23, reported a decline in vehicle deliveries in the first quarter, its first in nearly four years.
Tesla shares were down 0.8% in premarket trading on Monday.
CARMAKER IS SET TO LAY OFF MORE THAN 10% OF ITS WORKFORCE, ACCORDING TO A REPORT IN TECH PUBLICATION ELECTREK