After a long wait and subsequent delays, Tesla is finally going to enter Indian markets followed by CEO Elon Musk & Modi’s recent meeting in Washington D.C. As per media reports, Tesla is going to set up a showroom in Mumbai of Maharashtra state in India.
With its first showroom in the country, the electric vehicle (EV) industry giant reaches an essential breakthrough which demonstrates its readiness to begin operations in the expanding Indian market.
As per a report in The Times of India, Tesla is going to take up a 4000 sq ft space on the ground floor of a commercial building in BKC (Bandra Kurla Complex ) of Mumbai to display Tesla’s car models. The lease is expected to be 900 per sq ft with a rent of Rs 35,00,000 a month. The lease agreement is for next five years and additionally, Tesla expected to open a second showroom in Delhi’s Aerocity Complex.
The lease was signed just weeks after Modi met Musk in Washington. The market entry plan for Tesla in India has been under development for multiple years. The organization scheduled a 2022 rollout at the start which it later delayed. The combination of fresh operational initiatives makes Tesla’s Indian market entry seem increasingly likely for the future. The timing proves crucial as both leaders finalized the provisions of the India-US Bilateral Trade Agreement following their Prime Minister Modi – US President Trump meeting.
However, there are challenges. Indian government policies impose a 110% duty tax on imported vehicles which presents an obstacle for Tesla to enter the market. During an interview President Trump voiced his discontentment about high import tariffs because they limit Tesla and other American companies from operating successfully in India.
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