Tesla is scouting for showroom locations in New Delhi and Mumbai as it prepares to sell its EVs in India later this year, according to a fresh media report.

What Happened: According to a Reuters source, Tesla plans to open a 3,000 to 5,000-square-foot showroom and a service hub in each city.

Tesla executives began exploring potential sites in high streets and malls last month, engaging with several real estate developers, another source mentioned. The company aims to start construction soon to open the showrooms by 2024.

Two people familiar with the discussions state that amid a decline in global vehicle deliveries — the first in nearly four years — Tesla is ramping up efforts to penetrate new markets.

See also: Tesla Inks Deal With Tata Electronics To Source Semiconductor Chips: Report

According to a separate report, Tesla has started manufacturing right-hand drive cars at its German plant for export to India. This follows India’s recent decision to reduce electric vehicle import taxes to 15% from as much as 100% for automakers that invest at least $500 million and establish a manufacturing facility.

Tesla CEO Elon Musk is scheduled to meet with Prime Minister Narendra Modi during a two-day visit starting Sunday. The last encounter between Musk and Modi occurred in New York in June.

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