NEW DELHI/BERLIN, Apr 7 (Reuters): Tesla has begun production of right-hand drive cars at its plant in Germany for export to India later this year, three people aware of the company's plans told Reuters, as it moves ahead with a possible entry into the world's third-largest car market.
A team from Tesla is expected to visit India later this month to look at sites for a local car manufacturing plant that would require an investment of about $2 billion, said two of the three people, who declined to be named because the plans are not public yet.
India last month slashed the import tax rate on certain electric vehicles if their makers invest at least $500 million in the country and start production there within three years. The move is a win for Tesla, which had lobbied for months for lower taxes, but faced resistance from local carmakers.
"The right-hand drive cars which will be allocated to India, they have started building them," one of the people said, with some cars due to be shipped to India by the end of the year.
It was not immediately clear which model Tesla plans to export to India. It currently produces only the Model Y at its factory near Berlin.
Tesla begins making cars in Germany for export to India
FE Team | Published: April 07, 2024 23:52:03
Tesla begins making cars in Germany for export to India
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