By Aditya Kalra and Aditi Shah

NEW DELHI, April 15 (Reuters) - U.S. electric carmaker

Tesla is looking at potential showroom locations in New

Delhi and Mumbai ahead of plans to begin sales in India later

this year, two people familiar with the discussions said.

Tesla, which saw its global vehicle deliveries decline in

the first quarter for the first time in nearly four years, is

stepping up efforts to expand into new markets.

It wants to begin with a showroom of 3,000 to 5,000 square

feet (280-465 square metres) as well as a service hub in each

city, said one of the people familiar with the plans.

The automaker has begun production of right-hand drive cars

at its plant in Germany for export to India, separate sources

have said.

India last month cut electric vehicle import taxes to 15%

from as much as 100% for automakers that invest at least $500

million and set up a factory.

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.

Tesla executives started looking at locations last month and

have held talks with several real estate developers as they look

at potential high street and mall sites, one of the sources

said. The person added that the company is keen to begin

construction soon so that the showrooms can open in 2024.

The sources declined to be identified as discussions were

confidential. Tesla did not immediately respond to a request for

comment.

Tesla is grappling with slower growth for electric vehicles

in both its main markets of the United States and China. Reuters

reported this month that Tesla has cancelled a long-promised

inexpensive car that investors have been counting on to drive

mass market growth.

Demand for electric cars in India - the world's

third-largest auto market - is expected to rapidly climb. EVs

made up just 2% of India's total car sales in 2023, but the

government has said it wants 30% of all new car sales to be

electric from 2030.