Tesla Inc. (NASDAQ: TSLA) has ramped up its plan to enter the Indian market by scouting for locations to open showrooms and hiring an executive to lead its lobbying and business efforts, Reuters reported Wednesday, citing sources familiar with the discussion.
What Happened: Tesla is looking for commercial properties as large as 20,000 to 30,000 square feet each to open showrooms and service centers in the three major Indian cities of New Delhi, Mumbai and Bengaluru. The Elon Musk-led company is said to have hired global property consultant CBRE Group Inc. (NYSE: CBRE) for the showroom searches.
In addition, the electric vehicle maker has reportedly recruited Manuj Khurana, a former executive of India’s investment promotion body Invest India, to lead its policy and business development efforts in the country. Khurana will also handle Tesla’s market-entry process in India, as per the report.
See Also: Tesla In Talks With Tata Power For India Charging Infrastructure
Why It Matters: India’s huge market holds similar potential for Tesla as China does. Of late, the South Asian nation has been looking to reduce its dependence on oil and to promote electric vehicles. Tesla’s entry into the Indian market would help meet these goals.
India is also reported to have offered incentives to Tesla to produce electric vehicles to compete with China’s cost of production.
In January, Tesla registered its office as Tesla Motors India & Energy Pvt Ltd, in Bengaluru, the capital city of Karnataka, and also named three directors.
However, Tesla could find the Indian market a tough nut to crack, due to the low adoption of electric vehicles, negligible charging infrastructure and high import duties even for electric cars.
Price Action: Tesla shares closed almost 3% lower on Wednesday at $670.97.
Read Next: Tesla Has Finally Refunded Customers Double-Charged During New EV Purchases: CNBC
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