Tesla to import EVs from German Gigafactory to India
What's the story
Tesla is planning to start its operations in India by directly importing vehicles from its German Gigafactory, reported Moneycontrol citing 'well-informed' sources.
Due to the ongoing geopolitical tensions between India and China, Indian government officials have advised the US-based EV maker against importing cars from its Shanghai Gigafactory in China.
The source mentioned, "Indo-German ties on multiple disciplines have been inked earlier and the US EV maker is encouraged to leverage the same."
Details
Tesla seeks customs duty cut on imported EVs
Tesla is currently seeking a reduction in customs duty for importing electric vehicles - Completely Built Up (CBU) from Germany.
The Indian government appears open to the idea, considering that several luxury car manufacturers, such as Mercedes, BMW, and Audi, are headquartered in Germany.
Moneycontrol reports that prices of models brought in as CBU from Germany can be slashed by 20-30% which will be a boon not only for Tesla but other luxury carmakers based there.
What Next?
Tesla's Rs. 20 lakh car to be launched in India
Media reports indicate that Tesla plans to introduce a €25,000 car (around Rs. 20 lakh), which will also be launched in the Indian market.
An insider informed Moneycontrol, "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 indigenized in India."