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Tesla has initiated the production of right-hand drive cars at its German plant for export to India, marking a significant step towards its potential entry into one of the world’s largest car markets. This move comes as Tesla continues to focus on expanding its global presence and tapping into new markets.
According to three sources familiar with Tesla’s plans, the company has started manufacturing right-hand drive vehicles at its facility in Germany, with the intention of shipping them to India later this year. The development underscores Tesla’s ongoing efforts to establish a foothold in India, a market it has been eyeing for years.
A team from Tesla is expected to visit India this month to evaluate potential sites for a local manufacturing plant, which is estimated to require an investment of around $2 billion. The Indian government recently announced a reduction in import tax rates for certain electric vehicles, provided manufacturers invest at least $500 million in the country and commence production within three years.
“The right-hand drive cars allocated for India have entered production,” one source revealed, adding that some of these cars are scheduled to be shipped to India by the end of the year. The specific model that Tesla plans to export to India has not been disclosed yet, as the company currently produces the Model Y at its Berlin factory.
Under India’s new policy, companies can import up to 8,000 cars annually at the reduced tax rate. Tesla’s entry into India is part of a broader strategy that includes investment in a charging network and increased sourcing of components locally.
Tesla’s interest in India has been evident through multiple visits by company officials and meetings with Indian leaders, including CEO Elon Musk’s discussion with Prime Minister Narendra Modi last June in New York. The company’s expansion into India aligns with the government’s goal of increasing electric vehicle adoption, aiming for 30% of total car sales to be electric by 2030.
In a competitive landscape where Chinese players are intensifying their presence, Tesla’s move into India signals its commitment to diversify its market reach and capitalize on the growing demand for electric vehicles globally.
Sources By Agencies
