Tesla’s Gigafactory in Berlin has taken a significant step towards the Indian market by starting the production of right-hand drive models. Reports indicate that these models are expected to reach India by the end of the year, marking the first time the German Tesla factory has produced right-hand drive models.
Tesla’s new move: Special production for India begins in Germany
Until now, Tesla’s Shanghai factory was responsible for producing these special versions of its electric models. However, the inclusion of the Berlin factory in this process is crucial in the context of the Indian market and new import tax rates.
Last month, the Indian government reduced customs duties on electric vehicle imports for automakers that invest at least 500 million dollars in the country and start production within three years. Under the new regulation, companies will be able to import up to 8,000 vehicles a year at lower tax rates.
With the post made by Elon Musk on X, the highly anticipated Tesla Robotaxi launch date has been announced.
The American automaker Tesla has long shown interest in the Indian market. CEO Elon Musk met with Indian Prime Minister Narendra Modi in New York last June. According to the Financial Times, a Tesla team will assess potential sites for an electric vehicle factory in India by the end of April.
The investment amount is expected to be between 2 and 3 billion dollars. The new facility is anticipated to be set up in states with automobile production hubs like Maharashtra, Gujarat, or Tamil Nadu. Discussions between Tesla and the Indian government have experienced ups and downs.
In 2022, Tesla requested the government to reduce import tariffs, but Indian officials suggested that Tesla should manufacture within the country. After a period of stalled discussions, they resumed with visits by Tesla executives to the country.
Tesla’s initiation of production for India in its German factory and plans for a potential factory in India are key parts of the company’s global strategy. How do you think Tesla’s initiatives will impact the electric vehicle market? Share your thoughts in the comments section below.
