Tesla has reportedly produced right-hand drive (RHD) cars for the Indian market in Germany. Headquartered in Gruenheide near Berlin, the plant has a production capacity of 50,000 units per year and will serve as an export platform for hotel markets. like India.
It is a known fact that the American electric car logo has been trying to penetrate the third largest car market in the world for a long time. According to a report published via Reuters, Tesla is finishing up shipping RHD electric cars to India by the end of this year.
The move comes at a time when the Indian government recently cut import taxes on some electric vehicles, provided automakers dedicate an investment of at least $500 million in the country and start local production within three years. Under India’s new policy, foreign corporations can import up to 8,000 cars a year at a reduced tax rate.
Although this policy through the Indian government has met with combined reactions from the automotive sector, it is considered a wonderful stimulus and relief for Tesla. This represents a glorious opportunity for the U. S. tech giant to carve out a market for itself in India. At the moment, it’s unclear which style Tesla will ship to India.
Currently, Tesla’s factory in Berlin exclusively produces the Model Y, raising hypotheses about its suitability for the Indian market. Initially, for HRD markets such as the UK, Tesla imported cars from China. However, the Indian government has made its intentions regarding the “no China” policy transparent to Tesla.
The plans for shipments to India are the first indication of production of right-hand drive (RHD) vehicles in Berlin. Tesla’s factory in Shanghai, its main export hub located closer to right-hand-drive markets such as Australia and Japan, has so far dealt with the production of those vehicles. However, it cannot yet be proven whether Tesla intends to move its export hub from China to Germany for RHD markets.
According to sources cited via Reuters, a Tesla team is expected to travel to India later this month to read about the sites of a local car production plant that would require an investment of around $2 billion (around Rs 1. 66 lakh crore). A recent report by The Financial Times revealed that Tesla was looking at a possible location for its proposed production facility in India.
The Reuters report confirms the same as sources familiar with Tesla’s breakthrough plans to build its factory in the southern state of Tamil Nadu, Maharashtra in the west and Modi’s home state of Gujarat.
Tesla is on a war footing to enter India’s auto sector. Even the smallest competition has won in the Indian market. In January, Vietnamese EV logo VinFast agreed to invest $2 billion (about 1. 66 trillion lakh crore) in India and started construction of an electric vehicle factory in Tamil Nadu.
(With contributions from Reuters)
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