The largest EV giant in the world, Tesla, has reportedly commenced manufacturing RHD cars in Germany for exports to India. Recent reports suggest that the American auto major will send out a team to India soon to finalise a location to set up its manufacturing plant. The top contenders for the production facility will be Gujarat, Maharashtra and Tamil Nadu. Note that these three states already possess an established ecosystem around automobile manufacturing. Also, their proximity to the ports is a crucial aspect because Tesla will export its EV from India to many countries.
Tesla Makes RHD Cars for India
As per the latest Reuters report, Tesla has begun the production of right-hand-drive EVs for exporting to India at its Berlin Gigafactory. These cars could make their way into our market by the end of this year. The move to sell Tesla cars in India comes after the Indian government approved the EV policy which announces the reduction of import duties from 100% to 15% if the foreign carmaker promises to invest at least $500 million in local manufacturing here. Tesla has been seeking this reduction in import tariffs for a long time.
Therefore, since the EV policy was announced, Tesla officials have been eager to land in the country and start scouting for the ideal location to set up a manufacturing hub in India. Some reports even claim that they are planning a facility with an annual capacity of 500,000 EVs. Tesla will cater to the domestic demand, as well as exports to many parts of the world including South East Asia, the Middle East, Africa and Europe. More details will surface in the coming days once the Tesla team arrives here.
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Author’s Note
Tesla is the biggest EV maker in the world. However, in recent times, it has experienced a slowdown in its sales. But that is part of the overall trend of a slowdown in the EV demand in the major countries of the world – China and the USA. As a result, moderate growth is expected for this year. But with a new country like India, which is still at a nascent stage in EV adoption, things could change for Tesla. India and many such developing nations are still new to the concept of EVs. Hence, an early-mover advantage here over its global competitors could contribute significantly to Tesla’s growth.
