At its German facility, Tesla has begun producing a limited number of right-hand drive Model Y cars specifically for India. The company aims to tackle the Indian automotive market later this year, with these models expected to be among the first Tesla vehicles officially available in the country.
Tesla’s ambition extends beyond selling cars in India. The company is considering investing $2-3 billion in a new Gigafactory, with potential locations in Maharashtra, Gujarat, Tamil Nadu, and Haryana (less likely). Factors such as existing automotive industry presence and proximity to seaports are significant criteria for choosing the location. This investment would make it easier for Tesla to export and support additional investment from suppliers.
In March, the Indian government launched incentives to attract EV manufacturers. These incentives include reduced tariffs on imported electric cars if the manufacturer sets up production in the country. Such policies have made India an appealing destination for Tesla’s expansion plans, which might also include producing an entry-level model dubbed "Tesla Model 2" and possibly expanding to battery production within its Gigafactory.
Despite these ambitious plans, Tesla has not officially confirmed its intention to produce right-hand drive vehicles in Germany specifically for the Indian market. However, the company's active scouting mission in April supports its aim to find suitable locations for an electric car manufacturing plant in India.
Sources: Hindustantimes, FT
