Tesla has reportedly kickstarted the production of right-hand driven (RHD) cars for the Indian market in Germany. Based out of Gruenheide near Berlin, this facility has a production capacity of 50,000 units per annum and will serve as an export hub from the RHD markets like India.
It is a known fact that the American EV brand is looking to penetrate into the world’s third largest automotive market for quite some time now. As per a report published by Reuters, Tesla intends to start shipping the RHD electric cars to India by the end of this year.
Tesla RHD cars made in Germany
This development comes at a time when the Indian government recently slashed import taxes on certain electric vehicles provided manufacturers commit to invest at least $500 million in the country and start local production within three years. Under the new Indian policy, foreign companies can import up to 8,000 cars a year at a lower tax rate.
While this policy by the Indian government has been met with mixed reactions from the automotive fraternity, it is being considered as a big boost and relief for Tesla. It presents a wonderful opportunity for the American technology giant to build a market for itself in India. As of now, it is unclear which Tesla model will be shipped to India.
Currently, Tesla’s Berlin factory exclusively produces the Model Y which raises speculation regarding its suitability for the Indian market. Initially, for RHD markets like the United Kingdom, Tesla was importing cars from China. However, the Indian Government has clearly made its intentions clear to Tesla about the ‘No China’ policy.
The plans for shipments to India are the first indication of right-hand drive (RHD) cars being produced in Berlin. Tesla’s Shanghai plant, its primary export hub located nearer to right-hand-drive markets, such as Australia and Japan, has so far handled production of such vehicles. However, it cannot be confirmed yet if Tesla intends to gradually shift its export hub from China to Germany for RHD markets.
Tesla local production in India
According to sources cited by Reuters, a team from Tesla is expected to visit India later this month to look at sites for a local car manufacturing plant that would require an investment of about $2 billion (approx Rs 1.66 lakh crore). A recent report by Financial Times, revealed that Tesla is scouting for a potential location for its proposed manufacturing facility in India.
The report by Reuter confirms the same as sources aware of this development have revealed that Tesla is looking at the southern state of Tamil Nadu, Maharashtra in the west, and Modi’s home state of Gujarat for its factory, which it expects to build in two years.
Tesla is at a war footing to enter into the Indian car business. Even smaller rivals have got a gate pass to the Indian market. In January, Vietnamese EV brand VinFast ,agreed to invest $2 billion (approx Rs 1.66 lakh crore) in India and started building an EV factory in Tamil Nadu.
(With inputs from Reuters)