Tesla plans to commence its showrooms in Indian and currently looking out for locations for its establishment. The company may arrange the setup in three cities and already hired an executive for lobbying.
Additionally, in January the company made arrangements with a local company to supply and sell the Model 3 sedan. The process may start in few months. The company targets rich customers in a confined market.
Furthermore, the cities for set-up include Mumbai, New Delhi, and Bangalore. The company is in search of an area of approximately 20,000-30,000 square feet to build showrooms and service centers.
The company hired Manuj Khurana to execute the policy and business development efforts in the domestic region.
Earlier, the CEO of Tesla Elon Musk be assured to enter the domestic market in 2021.
Also, the CBRE Group Inc thoroughly is in search of locations with focusing on an easy approach to opulent customers.
However, setting up operations in the Indian market is a bit challenging for the company.
In India, the tax on imported cars is high with less preference towards electric vehicles.
As per the records, only 5000 electric vehicles sold compared to the 2.4 million cars sold in the previous year.
Nonetheless, the increasing wealthy customers in the domestic market create an opportunity too big to ignore for the company. Also, that it favors the government’s plan to promote clean cars.
Lastly, as per the resources the Indian government offered to provide incentives to reduce the production cost. This applies in case if it plans to set up a manufacturing unit in the country.
Check all the recent news updates and share market updates