Tesla electric cars coming to India. Elon Musk spills the beans on timeline

Tesla electric cars coming to India. Elon Musk spills the beans on timeline

  • Tesla is scouting locations for setting up its manufacturing plant in India.
Tesla is scouting locations for setting up its manufacturing plant in India. (AFP)

The biggest news in the Indian automotive space in the last few days was that Tesla is scouting locations for its India manufacturing facility. Three states of the country, namely Maharashtra, Gujarat and Tamil Nadu are reportedly on the radar of the electric car giant. Telangana government is also said to be in talks with Tesla for the plant. We have also reported earlier that, Tesla has already started production of cars in a limited number for the Indian market at its Gigafactory in Berlin. Also, previously Tesla India Motor and Energy Pvt Ltd leased office space in Pune, marking its first official presence in India.

HT has reported that Tesla’s CEO Elon Musk said that it is going to be a natural progression for his company to provide electric vehicles in India. However, he didn’t reveal which models would be the first to reach Indian shores officially. We can expect the Model 3 and Model Y, two of the automaker’s most popular EV offerings to be introduced to the country initially, while the other models too would be launched here gradually.

Meanwhile, the auto company has pulled the plug on plans for its most affordable car project, which could have been a perfect model for the Indian market. Instead, Tesla now plans to focus and invest in robotaxis. This comes after it was reported that Tesla was searching for a location to set up its factory in the country.

Tesla setting up its manufacturing facility in India could mean the electric car manufacturer will invest somewhere between $2 billion to $3 billion in the country. The Indian manufacturing facility of the OEM will not only cater for the Indian market but the overseas demand as well. What’s more important is that this would be a major leap for the Indian electric vehicle industry as well as the local manufacturing sector.

First Published Date: 09 Apr 2024, 07:10 AM IST


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Tesla’s Giga Berlin plant kicks off production for Indian market

Tesla’s Giga Berlin plant kicks off production for Indian market

  • Tesla has started production of right-hand drive electric cars in its Giga Berlin plant focusing on the Indian market.
Tesla has started production of right-hand drive electric cars in its Giga Berlin plant focusing on the Indian market. (REUTERS)

Tesla has kicked off production for India-bound electric cars at its Giga Berlin facility, claims an HT report. The electric car manufacturer has started producing right-hand drive cars for the Indian market in its Berlin factory and hopes to have them on the roads of this country by the end of 2024, the report has stated quoting a person familiar with the OEM’s plans. Produced in a small number, these electric cars would be used as test prototypes in the Indian environment. However, the person didn’t reveal which models of the auto company are being produced as the Indian market-spec right-hand driver versions. Expect the EVs like Model 3 and Model Y to reach Indian shores.

Interestingly, this news comes immediately on the heels of the report that Tesla is sending a team to India in the third week of April to scout for locations to set up its manufacturing facility in the country. The OEM is reportedly planning to set up its India plant with an investment of about $3 billion.

The report stated that Tesla is working on its India plan in two dimensions, export and manufacturing dimensions. This comes after the Indian government announced its new EV policy in March this year, in which the customs duties for importing electric cars were reduced to boost electric mobility in India as well as local manufacturing. Also, this policy mandated that the OEMs could enjoy lower customs duty only if they set up manufacturing facilities in India with a certain level of investment. The Indian government linked the policy to a simultaneous manufacturing investment commitment above a certain threshold, within a specified period, and with a strong localisation of the supply chain as well.

In November 2023, it was reported that Tesla was working on its proposed most affordable car, which is likely to be a two-door sedan or SUV, which is specially focused on the Indian market. This affordable EV is meant to debut in Germany and India will be the second market for the car. This electric car is meant to be manufactured in Giga Berlin only. However, with the Indian market in focus, it will be later produced in Tesla’s intended India manufacturing plant as well.

Tesla is reportedly considering Gujarat, Maharashtra and Tamil Nadu for its intended India manufacturing plant site, primarily because these are coastal states with major ports, which will allow Tesla to export the cars produced locally in the country to overseas markets. The report further stated that Tesla will possibly make the largest foreign direct investment in India, including a direct and immediate investment of $3 billion to produce its most affordable new small car. Besides that, there would be a $10 billion commitment from its other partners to support this manufacturing ecosystem in the country, and a cumulative $15 billion in the battery industry ecosystem as well.

First Published Date: 04 Apr 2024, 06:42 AM IST


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