Tesla in new bid to enter India car market as sales slump in Europe and Australia

Tesla has reportedly resumed its search for showroom space in India in the most recent signs that the company is hoping to enter the Indian market.

Reuters reported that Tesla was in early stage talks with Indian real estate development company DLF to help secure space in the country’s capital of New Delhi.

While Tesla’s reported search for property was described as “exploratory” and that nothing had been finalised, one of the sources quoted such specifics that Tesla was looking for between 3,000 to 5,000 square feet for a showroom as well as a space three times larger for its delivery and service operations.

The timing of these reports is interesting, considering the fallout from the recent United States elections which has seen Tesla founder and CEO Elon Musk secure political capital unheard of for a private business owner.

Federal filings analysed in early December showed that Musk and entities he controls – including his main super PAC, America PAC – had donated around $US277 million to back Donald Trump and other Republican candidates and efforts.

Musk has not only his own personal fortunes rise, both financial and political, but has also secured a position in the government which will give him the opportunity to ensure contracts are awarded to his companies.

But while Tesla’s share price has soared since the election, sales of Tesla EVs have fallen significantly in some key markets, including in Australia, where they are down 20 per cent over the year, and down by 13 per cent in western Europe. In October, Tesla’s sales in Europe were the lowest in two years, according to Schmidt Automotive.

It was reported in early April that Tesla would send a team to India to explore the possibility of expanding into the country, scouting possible locations for factories and showrooms.

Elon Musk was scheduled to meet with Indian Prime Minister Narendra Modi during the trip, where it was also reported that Musk was on the verge of announcing an investment in India of between $US2 and $US3 billion.

Days before the trip was scheduled to take place, however, Musk postponed the trip to India after Tesla decided to sack 10 per cent of its staff amidst falling sales.

With his company’s financial position recently secured thanks to his lavish personal spending to back Donald Trump’s successful re-election campaign, it is not surprising that Tesla has turned its attention back to India, a potentially huge international market.