Tesla Revs Up for India Entry: Model Y, Local Production, and Charging Network on the Horizon

Gireesh

8 months ago

Tesla’s Indian debut is inching closer thanks to the government’s new electric vehicle policy. Here’s a breakdown of what to expect:

Production Shift and Potential India Hub:

Gearing Up in Germany: Reuters reports Tesla has begun manufacturing right-hand drive cars at its German factory. This could be a sign for India, as the Model Y is currently the only car produced there.
Diversifying from China: Traditionally, Tesla’s Shanghai plant supplied right-hand drive vehicles. This shift to Germany signifies a potential decrease in dependence on China, with India possibly becoming a future RWD (Right-Wheel Drive) manufacturing hub.

Scouting for a Manufacturing Base:

A $2 Billion Investment: A Tesla team is expected to visit India this month to evaluate potential manufacturing plant locations. States like Maharashtra, Gujarat, and Tamil Nadu are vying to attract the electric car giant.
Beyond the Factory: Tesla plans to invest beyond the $2 billion earmarked for the factory, focusing on establishing a robust charging network across India.

The New EV Policy and Model Options:

Lower Import Duty, But with Strings Attached: Tesla previously lobbied for reduced import tariffs on fully built-up (CBU) models to gauge market demand. The new policy offers a compromise.
Importing for Testing: Tesla can import 8,000 vehicles at a reduced 15% duty, but with a significant caveat: a minimum investment of $500 million (around Rs. 4,150 crore) in the Indian market is mandatory.
Local Production and Domestic Focus: To qualify for the reduced import duty, Tesla must establish domestic manufacturing within three years and transition to local operations.
Potential Model Lineup: Reports suggest Tesla might introduce the Model Y and Model 3 sedans in India.

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Gireesh

Gireesh has been reporting on cars for over 10 years. He might have a keen eye for all type of fuel cars but he has a soft corner for electric cars. Gireesh also enjoys a good drive or ride after a hectic day at work and like to watch movies.