Tesla’s much-anticipated launch in India might face a setback. Elon Musk, CEO of Tesla, recently announced via social media that his visit to India, planned to finalize the deal, is delayed due to pressing Tesla obligations.
Missed Meeting with Prime Minister
This news comes after Tesla lobbied for a new EV policy in India, which recently passed. The policy allows carmakers to import 8,000 electric vehicles at a reduced customs duty of 15%, with the condition of investing at least $500 million within three years and setting up manufacturing facilities in India. Musk was expected to meet with Prime Minister Narendra Modi to officially announce Tesla’s entry into India, but that meeting is now on hold.
Right-Hand Drive Production Begins
Despite the delay, there are positive signs. Tesla has reportedly started producing right-hand drive vehicles at its German plant. This is significant because India uses right-hand drive cars. While the German factory currently produces only the Model Y, India might also see the Model 3 offered. Traditionally, Tesla relied on its Shanghai plant for right-hand drive exports, but it seems they’re aiming to reduce dependence on China and see India as a potential future hub for right-hand drive car manufacturing.
What Now?
While the exact launch date remains unclear due to Musk’s delayed visit, Tesla’s production shift to right-hand drive vehicles suggests continued interest in the Indian market. We’ll have to wait and see how soon a rescheduled visit and official announcement will come.
