Right now China is one of Tesla's most important markets, accounting for about 30% of its sales.

But the electric car pioneer has its sights set on another Asian giant.

Tesla is now targeting India.

Sources have told Reuters the firm is seeking sites for showrooms in New Delhi, Mumbai and Bengaluru.

It's also hired a prominent local executive to lead its policy and business development efforts in the country.

Back in October company founder Elon Musk said Tesla would enter India in 2021 'for sure'.

The search for showroom space suggests that effort is accelerating.

But the country looks like a tough nut for Tesla to crack.

The country has negligible infrastructure for charging electric vehicles.

It also imposes high taxes on imported cars.

Last year it recorded just 5,000 EV sales, out of a total 2.4 million cars sold.

China, by contrast, saw sales of new energy vehicles touch 1.25 million.

Even so, analysts say India's growing number of affluent consumers make it a market the automaker can't ignore.

The country's roads minister has also said India could offer incentives to tempt Tesla into making its cars there.