Tesla has reportedly started hunting for not just a site for its factory in India but is also learnt to be scouting for locations in New Delhi and Mumbai for its showrooms. Reuters has confirmed this after its report claimed that two sources have revealed the search for showroom locations are underway in the two major Indian cities.

Tesla is all set to make its India debut with CEO Elon Musk scheduled to meet Prime Minister Narendra Modi during his visit to the country later this month. While the company will bring in its electric vehicles (EVs) via the import route initially, it will also start local manufacturing once its India facility is built and ready for operation. It is expected that the Tesla Model 3 will be the first to touch down on Indian shores and the company has already started manufacturing the right-hand-drive version of the EV at its German plant.

For now, Tesla is planning to concentrate its efforts on the national capital of New Delhi and financial capital of Mumbai. Reuters reports that each of the showrooms here would be around 3,000 to 5,000 square feet and that sources have confirmed there will also be one service hub in each of the two cities in the initial phase.

Tesla is believed to be talks with several real-estate developers as it moves into top gear to sell its EVs in India. In keen focus are posh high-street areas as well as mall sites for the upcoming showrooms. The company also plans to have these facilities ready and operational by the end of the ongoing calendar year.

How much is a Tesla likely to cost in India?

Although the company has not confirmed which EV it is bringing to India, all indications are that it would be Tesla Model 3 that is landing first. Model 3 is the most-affordable Tesla anywhere in the world. In the US, the Model 3 starts at $39,000 (approximately ₹32.50 lakh).

The Indian government reduced the import duty on EVs recently, provided that a company commits to local manufacturing and sourcing within three years. The import duty has been on EVs has been cut from 100 per cent to 15 per cent. This means that upon its India launch, the Tesla Model 3 is likely to be priced at around ₹37 lakh before taxes.

There were talks of Tesla working on an even more affordable EV for emerging markets like India. Referred unofficially by many as ‘Model 2’, it created quite a lot of buzz because even Musk said he was interested in such a product. But recent reports have suggested that Tesla has stopped work on the EV. If it ever decided to resume work on it and does bring it to India, expect it to be priced at around ₹30 lakh.

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