Tesla starts production of right-hand drive EVs for India launch
Tesla has started production of right-hand drive vehicles at its German facility, specifically targeting the Indian market, according to Reuters. Citing insiders, the publication reported that these cars are expected to be exported to India later this year. The move marks Tesla's potential entry into one of the world's largest automobile markets afters years of negotiations with the government over subsidies and lowering taxes on the import of EVs.
Tesla eyes local manufacturing unit in India
A delegation from Tesla is set to visit India to scout sites for a local manufacturing facility, a project estimated to cost around $2 billion. Tesla's team will primarily focus on regions with established automotive industries such as Tamil Nadu, Maharashtra and Gujarat. As per the Financial Times, Tesla might consider setting up its own battery factory in India. This would be similar to the gigafactories the Elon Musk-led company has in California, Texas, Berlin, and Shanghai.
India's new tax policy benefits Tesla
India recently announced a reduction in import tax on certain electric vehicles (EVs), provided manufacturers invest a minimum of $500 million in the country and commence production within three years. This policy change is seen as a victory for Tesla, which had been lobbying for lower taxes but faced opposition from local car manufacturers. Under the new EV policy, companies can import up to 8,000 cars annually at a reduced tax rate of 15%.
Tesla's Berlin factory produces first right-hand drive cars
Tesla has not yet disclosed the exact model to be exported to India. Currently, only the Model Y is produced at its Berlin-based factory. This marks the first time right-hand drive (RHD) cars are being manufactured in Berlin. Previously, RHD vehicles were produced at Tesla's Shanghai facility, which is geographically closer to RHD markets like Australia and Japan.
