Tesla, Inc. (NASDAQ: TSLA) has recently made several moves in pursuit of setting up shop in India, and local media reports suggest the electric vehicle brand may have zeroed in on the location for its first showroom in the country.
What Happened: Tesla is reportedly planning to open its first showroom in Mumbai, the financial capital of India.
The company has reportedly chosen the Lower Parel-Worli business district, which is an affluent locality in South Mumbai, for the location.
Tesla is also planning to open an office at this location, media reports said.
The EV giant has already registered its headquarters in Bengaluru, aka the Silicon Valley of India, in the southern part of the country.
The company is also contemplating a production unit in the state of Karnataka, where Bengaluru is situated.
The recent reports surmise that Mumbai will be Tesla’s regional office and Bengaluru will be its India headquarters.
Tesla has also hired local talents to oversee its Indian operations.
Related Link: What to Expect From Tesla’s Q1 Earnings Report On Monday
Why It’s Important: India, the world’s secondmost populous country, offers a huge potential market for EV manufacturers.
EV penetration in India is very low due to infrastructural bottlenecks and affordability.
Tesla, if it successfully establishes itself in India, will be the first international EV player to make inroads into the market. This could uniquely position the company to capitalize on the opportunity if and when EV penetration increases.
Tesla is likely to initially sell built Model 3 EV sedans in India, and therefore the pricing could be on the higher side.
In the long run, just as in China, it’s possible the company could start making its cars in India.
At last check, Tesla shares were up 1.44% to $739.89.
Related Link: Tesla In Talks With Tata Power For India Charging Infrastructure
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