Tesla begins production of right-hand drive cars in Germany for export to India

Tesla begins production of right-hand drive cars in Germany for export to India

Tesla has commenced the production of right-hand drive cars at its German plant for export to India later this year.

• Site Exploration: A team from Tesla is expected to visit India this month to explore sites for a local manufacturing plant, which would require an investment of around $2 billion.

• Tax Reduction: India recently reduced import tax rates on certain electric vehicles for manufacturers investing at least $500 million and starting production in the country within three years, benefiting Tesla.

• Production Progress: Right-hand drive cars allocated for India are being built, with some expected to be shipped by year-end.

• Interest in Indian Market: Tesla has been interested in the Indian market for some time, with officials visiting the country multiple times and CEO Elon Musk meeting Prime Minister Narendra Modi in 2023.

Tesla's expansion into India comes as demand for EVs slows in the U.S. and China, and faces increased competition from Chinese manufacturers, leading to a drop in first-quarter deliveries and missing estimates.