Tesla’s small electric car could be made in India – report

The long-rumoured small car from Tesla could be manufactured in India, according to an insider source cited by overseas media.

News outlet Reuters claims Tesla representatives are due to meet with India’s commerce minister this month, with discussions of a new factory reportedly on the agenda.

Reuters suggests the plant could be dedicated to producing Tesla’s small electric car – a new model announced by CEO Elon Musk in 2020, when he signalled a target price of $US25,000 ($AU37,800).

Indonesia is pushing to become an electric-vehicle hub for manufacturing, with Chinese company CATL – the world’s largest battery maker – and South Korean car giant Hyundai already establishing manufacturing facilities in the country.

Earlier this month, Indonesian President Joko Widodo met with Australian Prime Minister Anthony Albanese to discuss a closer working relationship in the emerging electric-car industry.

Mexico has already been confirmed by Tesla as the location of its next factory, where it will manufacture its ‘next-generation’ compact vehicle.

It’s plausible Tesla adopts a similar strategy with the Model 3 and Model Y – with factories in California and Texas producing cars for North America and surrounding markets, a factory in Germany providing some Model Ys to Europe, and a bigger facility in China serving most of Tesla’s global left- and right-hand-drive markets, including Australia.

This could mean the Mexican plant is dedicated to making cars for left-hand-drive markets, while a factory in either India or Indonesia services right-hand-drive nations such as Australia.

Both India and Indonesia are right-hand-drive markets themselves, with Mexico being a left-hand-drive market.

If the reports out of China are true, then Tesla will want to lock in a location for its next factory as soon as possible in order to begin manufacturing of its small car by 2025 or 2026.