Tesla has officially started producing right-hand drive (RHD) electric cars in Gigafactory Berlin for export to the Indian market, Reuters reports, citing three people aware of the plans.
Tesla starts RHD car production for the Indian market
According to the report, Tesla is now gearing up to penetrate the Indian electric vehicle market with the latest development in Giga Berlin. The Musk-led company is now producing electric vehicles in right-hand drive configuration, marking the first time Tesla built RHD models beyond Giga Shanghai in China.
“The right-hand drive cars which will be allocated to India, they have started building them.”
One of the sources
For context, Tesla used to only build RHD EVs in Giga Shanghai for export to key markets like Australia, Japan, and the United Kingdom. Meanwhile, Giga Berlin only handles the production of the popular Tesla Model Y crossover. Therefore, it is highly likely that the American company will launch the electric crossover in the Indian market first.
Tesla’s imminent arrival in India
EV-a2z recently reported Tesla’s plans to deploy a team in India by late April to scout for potential electric vehicle factory locations after the government announced a new policy.
The investment will reportedly cost $2 billion to $3 billion initially, potentially, Financial Times reports, citing “two people with direct knowledge” of the matter.
Tesla’s team will focus on states that already have automotive hubs, such as Maharashtra and Gujarat in the west and Tamil Nadu in the south.
The move comes after the Indian government introduced a new electric vehicle policy allowing electric automakers to import their offerings with lower taxes.
However, they must commit to investing at least $500 million in local manufacturing and start production within three years. Under this scheme, eligible car companies can import a maximum of 8,000 electric vehicles per year at a lower tax rate.
India’s EV industry
India’s electric vehicle market may be small but it continues to grow in recent years. It is currently led by local automaker Tata Motors.
Electric vehicles accounted for only 2% of the country’s overall car sales last year. However, the government aims to have EVs hit a 30% market share by 2030.
Tesla’s potential arrival in the local market will significantly aid the country to achieve its 2030 target. Apart from Tesla, Vietnamese startup VinFast also announced plans to invest $2 billion in India and broke ground in its first factory in Tamil Nadu.
