According to local reports in India, Tesla is actively searching for factory locations in the country and has already initiated vehicle production for imports.
Last month, India reached a compromise on its high import duties for cars, potentially allowing Tesla and other electric vehicle manufacturers to enter the market.
The agreement includes a significant reduction in import duties for select electric vehicles, provided the automaker commits to establishing an electric vehicle production facility in India.
Shortly after the announcement of this new program, Tesla seems to be ready to capitalize on the opportunity.
As reported by the Financial Times, Tesla is set to send a team to scout for potential factory locations in India:
Tesla will send a team to identify locations in India for a proposed $2bn-$3bn electric car plant, according to sources familiar with the company’s plans.
The focus will be on states with existing automotive hubs such as Maharashtra, Gujarat, and Tamil Nadu.
In addition, Reuters reports that Tesla has already begun producing right-hand drive vehicles at Gigafactory Berlin for export to India later this year:
According to three sources with knowledge of the company’s plans, Tesla has initiated production of right-hand drive vehicles in Germany for future export to India, as it progresses towards potentially entering the world’s third-largest car market.
This departure from Tesla’s typical approach of first establishing Superchargers and service centers before launching vehicles in a new market is somewhat surprising.
Interestingly, Tesla has not only opened orders in India recently.
Electrek’s Take
While these reports should be taken cautiously, the timing aligns with Tesla’s potential expansion into the Indian market.
Although the recent government program was explicitly aimed at Tesla, the company has been in negotiation for a similar agreement over the past few years.
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