Tesla To Start Production In Germany For India This Year: Reports

In a strategic move set to reshape India's electric vehicle (EV) market, American automaker Tesla is gearing up to commence production in Germany for its anticipated entry into India later this year. Reports suggest that Tesla executives decided to import cars into India from its Berlin Gigafactory, marking a departure from its primary export base in Shanghai.

Also Read: Tesla Scouts Sites In India For Gigafactory Investment

The decision comes amid growing anticipation following the Indian government's unveiling of a new electric vehicle policy, aimed at incentivising EV adoption and manufacturing within the country. The policy offers reduced import duties for EVs priced at $35,000 (approx. ₹ 30 lakh) or higher, provided automakers commit to substantial investments in India over the next few years.

Also Read: Big Boost To Tesla As Govt Introduces Electric Mobility Promotion Scheme

Tesla's move to produce right-hand drive models in its Berlin facility for export to India signifies a step towards tapping into the vast potential of the Indian market. Additionally, discussions have reportedly been revived regarding the establishment of a manufacturing facility within India.

Also Read: Government Denies Tesla Incentives for Entering Indian Market

While initial negotiations centred around a reduced import duty for Tesla's proposed $25,000 (approx. ₹ 20 lakh) EV, the company is now likely to introduce its Model 3 and Model Y vehicles, priced at approximately $40,000 (approx. ₹ 34 lakh) and $45,000 (approx. ₹ 38 lakh) respectively, to the Indian market.

However, since December 2023, the government of Telangana has embarked on a proactive mission to attract significant investment from global industry leaders. At the forefront of this endeavour is the tracking and study of Tesla's planned investment initiatives in India.

Telangana’s IT and Industries Minister Duddila Sridhar Babu took to X (formerly Twitter) to welcome Tesla founder Elon Musk to establish its manufacturing facility in Telangana facilitated by the state’s potential outcomes of this collaborative effort.