Tesla is scouting for viable showroom locations in Mumbai and New Delhi, as it looks to begin sales in India later this year, two persons in the know told Reuters.
The company aims to begin with a showroom of 3000 to 5000 square feet, alongside a service hub in each city, a source in the know informed the newswire.
Tesla has begun producing right hand car drives at its German plant, to export to India, separate sources have stated.
Last month India introduced a new EV policy, effectively slashing import duties on electric cars to 15% from 70-100% for five years. Automakers can benefit from the reduced import tariff if they invest at least Rs 4,150 crore, or USD 500 million, to make in India within three years.
Tesla Chief Executive Elon Musk is expected to make an investment announcement and meet Prime Minister Narendra Modi during a two-day visit to India from Sunday. Musk and Modi last met in New York in June.