Tesla Commences Car Production for India; Berlin Plant to Launch Right-Hand Drive Cars by Year End

Tesla, the electric vehicle (EV) manufacturing company owned by Elon Musk, has commenced production of right-hand drive cars at its Gigafactory in Berlin for India. The company aims to bring cars to the country by the end of this year. This information was provided in a report by The Times of India. Earlier on April 3, The Financial Times had reported that Tesla would send a team to India this month to scout locations for a production plant for electric cars worth $2 to $3 billion (₹16,000 crore to ₹25,000 crore).

Musk’s Team May Focus on Maharashtra, Gujarat, and Tamil Nadu States

According to reports, Musk’s team may focus on states like Maharashtra, Gujarat, and Tamil Nadu for setting up the electric car production plant. Sources suggest that while some car manufacturers already have plants in Haryana, Tesla’s factories will be located in three other states. This is because these states have ports, which will facilitate easy export of cars.

Government Approves New EV Policy on March 15

The entry of Tesla into India comes at a time when the central government has approved the new EV policy to establish a hub for electric car production in the country. Under the new policy, companies are encouraged to invest a minimum of ₹41.5 billion and there is no limit on maximum investment. As per the policy, foreign car manufacturers must start production and commercial operations of EVs within three years of entering India. A notification was issued by the Ministry of Commerce and Industry (MoCI) today (March 15) regarding this matter.

Musk Seeks to Establish Battery Storage Factory in India

According to media reports, Tesla is seeking to produce and sell battery storage systems in India along with electric cars. The company had proposed this to Indian authorities.

Meeting with Prime Minister Modi in November Last Year

In November last year, Commerce and Industry Minister Piyush Goyal met with Tesla CEO Elon Musk in California to discuss the establishment of production facilities. However, Musk was not present during this time. He wrote on social media today, “Couldn’t make it to California this time. But I’m excited about the future of India. I am a fan of Modi. It was a great meeting and I enjoyed it very much.”

PM Modi Also Tweets About the Meeting

Prime Minister Modi also tweeted about the meeting, saying, “Had a very good meeting with Elon Musk today. We discussed a range of issues from energy to spirituality.”

No Agreement Reached Between Tesla and Government in 2022

Tesla had expressed its desire to come to India in 2022, but there was no agreement between the company and the government. Tesla had requested the government to reduce the import duty on fully assembled cars from 100% to 40%. The company wanted its cars to be considered luxury rather than electric cars for taxation purposes. However, the government stated that there were no intentions to waive or reduce import duties on imported electric cars. The government said that if Tesla is committed to manufacturing in India and wants to sell cars first, then the possibility of reducing taxes will be considered later. On May 27, 2022, responding to a tweet, Elon Musk said, “Tesla won’t set up manufacturing plants anywhere it cannot sell cars or get service approval.