Tesla to Enter India Soon – Starts Production!
Tesla’s path to India is almost clear as the government has approved the new electric vehicle policy. Now a new report states that Tesla could enter India before the end of this year. For this, the brand has started manufacturing cars in its German factory. So what to expect from Tesla’s entry into India? Let’s talk about Tesla India launch.
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Production started
According to a report by Reuters, Tesla has begun production of right-hand cars at its plant in Germany. It is not clear which cars Tesla could bring to India, but currently, it only manufactures the Model Y at its German plant. Traditionally, Tesla has used its Shanghai plant, as an export hub for right-hand drive cars for countries like Japan, Australia and the UK. However, Tesla is looking to lower its dependence on China and that is why it is looking to shift RWD manufacturing from China to Germany. In future, India could also become its RWD manufacturing hub.
Tesla India launch plan
A team from Tesla is expected to visit India later this month to look at a site for a manufacturing plant that would require an investment of $2 billion. A lot of states like Maharashtra, Gujarat, Tamil Naidu, etc are looking to lure Tesla to India. Tesla is also looking to invest in the charging network, which would be an additional from the $2 billion embarked for the plant. According to reports, Tesla could bring the Model Y and Model 3 to India.
India’s new EV policy
For a long time, Tesla has been requesting the Indian government to reduce import duty on CBU models. The American brand wanted to test out the demand before starting operations in the country. Finally last month, the government approved the new electric vehicle policy with a catch. According to this new policy, brands will be permitted to import 8000 examples at a reduced customs duty rate of 15 per cent. But for this, the brand will need to commit an investment of at least USD 500 million (Rs 4,150 crore) in the Indian market. Additionally, the brands will need to set up their manufacturing in the next three years and start domestic operations.
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