Elon Musk’s Tesla has restarted its efforts to establish a presence in India, exploring options for showroom space in New Delhi, according to two Reuters sources familiar with the matter. The move signals a potential re-entry into the Indian market after the electric vehicle (EV) giant suspended its investment plans earlier this year.

Tesla had already abandoned plans to enter India, with Musk canceling a planned visit in April, during which he was expected to announce an investment of $2 billion to $3 billion. The cancellation coincided with Tesla’s decision to cut 10% of its workforce amid slowing sales.

Tesla is reportedly in discussions with DLF, India’s largest real estate developer, to secure a showroom and operational spaces in the Delhi-NCR region. The company is exploring several locations, including DLF Avenue Mall in south Delhi and Cyber ​​Hub in Gurugram.

According to the Reuters report, a source revealed that Tesla was looking for a 3,000 to 5,000 square foot showroom to serve as a customer experience center, as well as a larger facility for delivery and servicing of vehicles.

“Tesla’s research is still exploratory and nothing has been finalized,” the source told Reuters, adding that the company was also in talks with other developers.

Tesla’s entry into India remains fraught with pitfalls, particularly in terms of import customs duties. It is unclear whether the company will import at India’s high tax rate of up to 100%, or whether it will capitalize on new government policies allowing reduced tariffs of 15% on certain imports of electric vehicles.

The Indian government has adjusted its policies to attract global automakers, with companies like Hyundai and Toyota showing interest.

India’s electric vehicle market remains small, accounting for just 2% of the 4 million cars sold last year, but the government aims to increase that share to 30% by 2030. Tesla’s move comes at a time when Starlink, another Musk-led company, is also exploring opportunities in India following regulatory victories over Mukesh Ambani’s telecom giant.

If successful, Tesla’s entry into India could catalyze the growth of the country’s nascent electric vehicle market. The search for exhibition space comes as other global retailers, including Uniqlo, Mango and Marks & Spencer, set up shop in prime locations like the DLF Avenue mall.