Tesla to set up fully-owned retail showrooms in India: Report
Last updated on September 23rd, 2021 at 05:15 am
US-based EV (Electric Vehicle) manufacturer Tesla is planning on setting up fully-owned retail showrooms in India. According to a Business Standard report, Tesla is in talks with the Indian government to finalize the rules and regulations in accordance with FDI guidelines to begin selling cars directly from retail stores across the country. The single-brand retail route requires a company to comply with the foreign direct investment (FDI) guidelines applicable to the particular route, including local sourcing protocols, in order to launch sales in the country.
Previously, two leading global companies- Apple and Ikea – used the same route to start their retail business in the Indian market.
Dealerships in India
It has been learnt that the Elon Musk-led company will be initially establishing its dealership in major metro cities in India such as New Delhi, Mumbai and Bangalore. As of now, the American EV maker is looking for commercial spaces to set up its retail stores and service centres in these cities.
This development has come days after Tesla received approval for manufacture or import four of its models by the Indian government. As per media reports, Tesla’s four models including ‘Model 3’ and ‘Model Y’ received the roadworthiness certificate by authorities in India.
“These tests ensure that the vehicle matches the requirements of the Indian market in terms of emission and safety and road worthiness,” Bloomberg said in a recent report.
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Big plans for Tesla
Earlier, Tesla CEO Elon Musk also confirmed his plans to set up a factory in India after meeting the necessary requirements for importing the vehicles into the country. In a tweet, Musk had expressed his discontent over high import duties in India that will not allow the company to price the EVs competitively. Significantly, the company is in discussions with the central government to raise request for cutting import duty for electric vehicles. The Centre has also modified the FDI rules to promote foreign businesses to effectively operate in the country.
Tesla has registered itself under the name Tesla Motors India in the country. Industry experts have also indicated that Tesla has been sourcing critical auto parts from various parts of India to begin domestic manufacturing of its cars. Reportedly, Tesla has signed non-disclosure agreements with a number of domestic suppliers in the country as part of its strategy to setting up business in the Indian market.
