Tesla could build right-hand drive models for India in Germany
As the Indian Hindustan Times reports, Tesla has started producing a limited number of right-hand drive versions of the Model Y for India at its German plant. Tesla hopes to have the vehicles “on Indian roads later this year,” according to a person familiar with the matter. Tesla has yet to confirm the production of right-hand drive vehicles in Grünheide.
According to the report, the right-hand drive Model Y – it is not clear which drive variant is concerned – will also enable Tesla to develop and test a “charging ecosystem” in India. However, the Hindustan Times does not mention whether this involves Tesla Superchargers for fast charging or home and destination charging solutions with the Tesla Wall Connector. Nevertheless, developing a local infrastructure seems logical, as there have long been rumours that Tesla will focus on the Indian market, including building its own Gigafactory.
According to reports in the Financial Times and the Hindustan Times, Tesla will send a team to India in April to look for locations for an electric car plant in the country. Both articles state that Tesla will probably concentrate on states with existing automotive locations, such as Maharashtra and Gujarat in the west and Tamil Nadu in the south of the country.
An FT informant also stated that Tesla could also look at Haryana. Other car manufacturers already operate plants in the state, which borders the capital, New Delhi. According to other insiders, however, locations in Maharashtra, Gujarat and Tamil Nadu are more likely, as these states are located by the sea – and exporting vehicles via their seaports is easier and cheaper.
Cost will likely be a major issue, as Tesla has reportedly told Indian officials that it is also considering building the upcoming entry-level model in India. In other words, the vehicle that is often referred to as the Tesla Model 2. A person familiar with Tesla’s plans said the company is considering investing two to three billion dollars in the Indian car plant. Suppliers would invest billions more, making this one of the largest foreign investments in India. Tesla could later expand the Gigafactory to include its own battery production.
India’s government adopted an incentive programme in March, primarily with Tesla in mind, to develop the country into an EV production hub. Car manufacturers can import a limited number of electric cars into India at significantly reduced tariffs if they set up production there. If the information from the Hindustan Times is correct, in the case of Tesla, these vehicles will come from Germany and not from the factory in China.
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