Tesla and the Indian government are reportedly weighing the possibility of exporting the Model Y to the country from the manufacturer’s German factory. The move could be taken as India does not want to import products from China.
In recent months, information has increasingly appeared that Tesla intends to have a production factory in India. However, the company has not yet set a schedule or received official government approval. However, it is reported that Tesla will begin its first phase in India with direct imports from its Gigafactory Berlin. Informed sources told Moneycontrol that Indian government officials had dissuaded the company from importing any vehicles from its Chinese factory.
“Due to geopolitical tensions between India and China, the top management at Tesla has been categorically told by the ministries not to import any car from the world’s largest EV market. Moreover, Indo-German ties on multiple disciplines have been inked earlier and the US EV maker is encouraged to leverage the same,” a source working in an advisory capacity with the company told Moneycontrol on condition of anonymity.
Another source, who also spoke on condition of anonymity, told Moneycontrol that Tesla is seeking a reduction in customs duties on the import of Completely Building Up (CBU) electric vehicles from Germany. According to the information, the government has a positive outlook on this issue. If the import duty reduction on CBU EVs is approved, then several luxury car manufacturers like Mercedes, BMW, and Audi based in Germany will also benefit.
“Tesla was seeking concessions on the import of electric cars from other countries. So models brought in as Completely Built Up (CBU) from Germany can be slashed by 20-30 percent which will be a boon not only for Tesla, but other luxury carmakers based there, such as Mercedes, BMW, Audi, etc.,” said the source.
“While Tesla has earmarked its German facility for its most affordable car, it expects sizable volumes of this model from the Indian market. The unnamed Rs 20 lakh car, will initially follow the Completely Knocked Down (CKD) route with kits being imported from Germany and will later be heavily indigenised in India,” one of the sources quoted above told Moneycontrol.
“Also, luxury electric SUVs are gaining a lot of traction in Europe and India. So, it will be more prudent to launch Model Y in India in the initial phase than the Model 3 sedan which is made in the US and China,” another source revealed.
However, it is worth keeping in mind that all information is speculative and there is no official confirmation thus far.