Tesla Looking to Set Up Showrooms in Three Indian Cities
The American electric car manufacturer, Tesla is ready to enter India towards the end of the Q1 of FY 2021-22. The firm has already been registered as Tesla India Motors And Energy Private Limited with its headquarter set up in Bengaluru, Karnataka and is now looking for space in three different Indian cities – New Delhi, Mumbai and Bengaluru to open showrooms and service centers.
According to a fresh media report, the leading electric car maker is looking for commercial properties as large as 20,000-30,000 square feet in three Indian Cities. The company expected to import and sell the Model 3 sedan cars by as early as mid-2021 in India, seeking to target rich customers in a niche market. The company has hired global property consultant CBRE Group Inc for searching locations for its showrooms and service centers. Tesla has also recruited Manuj Khurana, a former executive of Invest India, to lead its policy and business development efforts in India.
In October, Tesla CEO Elon Musk said on Twitter the Tesla will enter India in 2021 “for sure”, though the billionaire had issued similar tweets in the past.
Further, the Indian Electric Vehicle market is extremely small in comparison to other major global markets. Last year itself, out of the total of over 2.4 million electric cars, only 5000 cars were sold in the country. This shows that the market is still far from mature for Electric Vehicles. Additionally, Tesla is targeting an affluent user base and isn’t aiming to offer affordable EVs in India as of now, which further narrows down the scope.
However, looking at the positive side, if Electric Car Manufacturer Tesla comes to India and sets up its car and battery manufacturing facilities, we can expect an increase in awareness and availability of cheaper components. This in turn can attract other Electric Vehicle makers to come up with alternates and cheaper EVs.