Automotive Tesla

Published on April 8th, 2024 | by Sounder Rajen


Tesla Begins RHD Production In Germany To Export To India

With this, Tesla is officially on its way to achieving its goals in India

Recent reports from credible online sources shed light on Tesla’s ambitious endeavours, revealing that the company has commenced the production of right-hand drive (RHD) vehicles at its facility in Germany. This strategic manoeuvre aims to position the brand as a formidable player in the Indian automotive market, marking a significant milestone in the brand’s global expansion strategy.

2024 Tesla Model 3

Sources close to Tesla disclosed that the electric vehicle (EV) giant is gearing up to export these newly produced vehicles to India later this year, signalling its keen interest in tapping into the vast potential of the world’s third-largest car market. To facilitate its foray into India, a dedicated team is slated to embark on a visit to the country in the coming weeks. 

Moreover, the primary objective for Tesla right now is to scout potential locations for the establishment of a local manufacturing plant exclusively dedicated to car production. The magnitude of this venture is underscored by an estimated investment of approximately USD2 billion (roughly RM9.5 billion), marking the brand’s ambitious plans for local production. 


However, in line with Tesla’s penchant for discretion, these plans have been kept under wraps, with the sources requesting anonymity to safeguard confidentiality. India’s recent decision to slash import tax rates for select electric vehicles has set the stage for the brand’s imminent entry into the Indian market. 

On top of that, under the revised tax regime in India, manufacturers are incentivized to invest a minimum of USD500 million (about RM2.3 billion) in India and kick-start production within three years, a move that resonates favourably with Tesla’s long-standing advocacy for reduced taxes. 

This regulatory shift not only aligns with Tesla’s strategic objectives but also paves the way for a more conducive operating environment in India. If only other countries would also review their tax systems to accommodate more buying power…

Despite encountering resistance from local car manufacturers, India’s proactive stance on tax reforms reflects a harmonious convergence with Tesla’s vision and aspirations for the Indian market. As Tesla embarks on this transformative journey, its strategic manoeuvres underscore a resolute commitment to revolutionising the global automotive landscape, one market at a time.


With India poised to emerge as a key battleground for electric vehicle supremacy, Tesla’s imminent entry heralds a new chapter in the country’s automotive narrative, one defined by innovation, sustainability, and boundless possibilities.

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