Tesla Starts Making Cars In Germany For India Exports This Year

- Advertisement -

A Tesla team is set to visit India this month to scout locations for a car manufacturing plant, with an estimated investment of around USD 2 billion, according to two sources who wished to remain anonymous as the plans are not yet public.

Tesla has initiated the production of right-hand drive vehicles at its German facility, targeting exports to India later this year, as per three individuals familiar with the matter. This move signals Tesla’s potential entry into India, the world’s third-largest automotive market.

A Tesla delegation is anticipated to visit India this month to evaluate potential locations for a domestic car manufacturing plant, which is projected to necessitate an investment of approximately USD 2 billion. This information comes from two of the aforementioned individuals, who requested anonymity due to the confidentiality of the plans. Last month, India significantly reduced the import tax on certain electric vehicles, provided their manufacturers invest at least USD 500 million in the country and commence production within three years. This policy change benefits Tesla, which has been advocating for lower taxes despite opposition from local automakers.

- Advertisement -

According to a source, the right-hand drive cars designated for India have begun production, with some vehicles anticipated to be shipped to India by the end of the year. Although it is not immediately clear which Tesla model will be exported to India, the Berlin factory currently only manufactures the Model Y.

Under the new Indian policy, companies can import up to 8,000 cars annually at a reduced tax rate. Tesla has yet to respond to inquiries for comments outside of U.S. office hours.

This development marks the first instance of right-hand drive vehicles being produced in Berlin for Tesla. Previously, the Shanghai plant, situated closer to right-hand-drive markets such as Australia and Japan, handled the production of such vehicles. Tesla imported right-hand drive Model Y vehicles from China for its UK launch and has not disclosed whether it has transitioned to importing from Berlin.

Tesla has been exploring the Indian market for several years, with company officials visiting the country multiple times over the past year. CEO Elon Musk also met with Indian Prime Minister Narendra Modi in New York last June.

Tesla’s entry into India comes at a time when electric vehicle demand in its primary markets, the U.S. and China, is slowing, and competition from Chinese manufacturers is intensifying. This has led to a decline in Tesla’s first-quarter deliveries, falling short of expectations.

Tesla’s plans for India include investments in a charging network, in addition to the USD 2 billion earmarked for the manufacturing plant, and increased local sourcing of components. Tesla already imports parts from India and is now looking at reducing sourcing from China and making India a bigger sourcing hub.

Tesla is considering the southern state of Tamil Nadu, Maharashtra in the west, and Modi’s home state of Gujarat for its factory, which it aims to construct within two years, according to two sources.

India’s electric vehicle market, though small, is expanding. It is currently dominated by domestic automaker Tata Motors, with electric models accounting for 2% of total car sales in 2023. The government has set a target for electric vehicles to make up 30% of total car sales by 2030.

In January, Tesla’s Vietnamese competitor VinFast announced a USD 2 billion investment in India and commenced construction of an electric vehicle factory in Tamil Nadu.

- Advertisement -

Most Popular Articles

Aryaman Raghuvanshi
Aryaman Raghuvanshi
Aryaman Raghuvanshi is a Journalist at EFY. His passion is to explore the future of mobility, which gets him to cover latest technologies shaping the future of automobiles and EVs. But, at times he writes on broader technologies too. LinkedIn: https://www.linkedin.com/in/aryaman-raghuvanshi-2431b7153

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

NVIDIA Record $26B Q1 Revenue, Announces Stock Split And Dividend Hike

0
The quarterly cash dividend has been raised by 150%, resulting in $0.01 per share on a post-split basis. NVIDIA reported first-quarter revenue for the period...

“AIC-T-Hub Aims To Grow Startups So More Indian Unicorns Can Contribute To The GDP”

0
T-Hub has collaborated with Atal Incubation Centre (AIC), initiated by the Atal Innovation Mission to incubate semiconductor startups, fostering innovation for India’s advancement in...

Pros And Cons: Boult’s Varun Gupta On Contract Electronics Manufacturing

0
While contract electronics manufacturing is not a new concept in India, it has lately picked up a pace never seen before. But what has...

Buzz

NVIDIA Record $26B Q1 Revenue, Announces Stock Split And Dividend Hike

0
The quarterly cash dividend has been raised by 150%, resulting in $0.01 per share on a post-split basis. NVIDIA reported first-quarter revenue for the period...

ASUS IoT And BRESSNER Technology Launch CTOS

0
The collaborative approach seamlessly integrates advanced features across CTOS solutions, fostering synergy. ASUS IoT has recently unveiled a strategic collaboration with BRESSNER Technology, aiming to...

Samsung Appoints Veteran Amid AI Chip Challenges

0
This shake-up, effective immediately, sees Young Hyun Jun transitioning from his role in future business planning to tackle the booming demand for high-end AI...

Important Sectors

Renault Kwid, Maruti eVX: 15 Upcoming EVs Under ₹10 Million (1 Crore) In India

0
Should you wait or buy an electric car from the existing options in India? Well, that’s a question only you should answer! However, if...

Commercial EV Finance: Empowering Younger Companies To Drive Growth

0
While electric three-wheelers have emerged as the face of EV adoption in India, startups engaged in their retail need increased access to finance for...

Samsung Appoints Veteran Amid AI Chip Challenges

0
This shake-up, effective immediately, sees Young Hyun Jun transitioning from his role in future business planning to tackle the booming demand for high-end AI...

Imec-Led European Labs To Get $2.7B From Chips Act Funding

0
Europe's chip revolution gains momentum with a €2.5 billion investment in cutting-edge pilot production line for sub-2nm technologies, aiming to elevate domestic production and...

Progress And Challenges In Autonomous Commuting

0
Despite over a decade of technological advancements and testing in cities like Phoenix and San Francisco, robotaxis still faces significant hurdles.  Companies like Waymo, Cruise,...

Manufacturing

Imec-Led European Labs To Get $2.7B From Chips Act Funding

0
Europe's chip revolution gains momentum with a €2.5 billion investment in cutting-edge pilot production line for sub-2nm technologies, aiming to elevate domestic production and...

EVR Motors Discusses Tech Sharing With Indian OEMs

0
The Israel-based EVR Motors designs Radial Flux Permanent Magnet (RFPM) motors and licenses this technology for manufacturing by OEMs and component makers. EVR Motors, an...

Automotive Electronics Industry Growth Prospects And Strategies

0
From electric vehicles (EVs) to autonomous vehicles, discover the challenges, key players, and market segments driving a $136 billion industry revolutionising vehicles and the...
Siemens and CSA

Siemens To Sell Innomotics To KPS For $3.8B

0
Siemens chief financial officer Ralf Thomas expressed his pleasure at the significant progress made in optimizing their portfolio through the sale of Innomotics to...
Siemens and CSA

Siemens Limited Announces ₹1000 Crore Capex

0
In a statement, Siemens announced that it is expanding its factory operations in Goa to address the rapidly growing demand for essential industry components. Siemens...