Ahead of the full fledge manufacturing plans in India, Tesla has commenced production of cars for Indian market to be shipped in from Germany
In a bid to make a name for itself in the world’s third largest automotive market, Tesla has commenced production of RHD vehicles. Unlike initial speculations suggesting shipments from China, a recent report suggests Tesla intends to ship RHD vehicles to India from its manufacturing facility in Germany.
Production Of Tesla Cars For India Commenced
World’s leading electric car maker, Tesla, is poised to enter the Indian automotive scene and establish a manufacturing presence here. Initially, there were setbacks to Tesla from Indian Government regarding the reduction in taxation for establishing a retail chain with units shipped into the country from China.
After a brief pause, Tesla changed its approach towards Indian market. The growing economy and India climbing the ladder to become the world’s third-largest automotive market certainly helped in these regards. One of the nudges could be Indian Prime Minister Narendra Modi’s visit to USA and dialogues exchanged with Tesla founder, Elon Musk.
Because India is a market for RHD vehicles, initial speculations suggested an imminent import from Tesla’s Shanghai plant. RHD Tesla cars are primarily manufactured here and are exported to all RHD markets like UK, Japan, Australia and others.
Recent report suggests Tesla has commenced production of RHD vehicles for India in its Berlin plant in Germany. Considering the proximity between Germany and UK, there is a possibility that Berlin-made RHD Tesla cars might be sold in UK, replacing Shanghai-made units. As of now, there are no confirmations regarding which vehicles Tesla has on the cards for Indian markets.
Tesla’s Berlin plant currently manufactures Model Y. Considering Indian road conditions and market perception, high-riding Tesla vehicles like Model Y could be a good fit.
Company’s roadmap
Electric vehicle juggernaut, Tesla, has pledged to establish manufacturing facilities in India. The company is about to finalise the location for the manufacturing facility. A team from Tesla is expected to fly into India and decide between three prospective locations – Tamil Nadu, Maharashtra and Gujarat.
Ahead of that, Tesla is bringing vehicles manufactured in Germany to India via CBU route. These developments surfaced following the revised taxes by Indian Government on certain electric vehicles who’s manufacturers invest a minimum sum of USD 500 million and commence production within the next three years.
As per the revised Indian policy, manufacturers can import up to 8,000 units into the country under the revised taxation policy at a lower tax rate. In the grand scheme of things, Tesla intends to increase its reliance on Indian providers for sourcing various components, making India a bigger sourcing hub.
