Tesla for India, made in Berlin

TESLA HAS BEGUN production of right-hand drive cars at its plant in Germany for export to India later this year, three people aware of the company's plans told Reuters, as it moves ahead with a possible entry into the world's third-largest car market.

- ADITI SHAH, SHIVANGI ACHARYA & VICTORIA WALDERSEE

A team from Tesla is expected to visit India later this month to look at sites for a local car manufacturing plant that would require an investment of about $2 billion, said two of the three people, who declined to be named as the plans are not public yet.

India last month slashed the import tax rate on certain electric vehicles if their makers invest at least $500 million in the country and start production there within three years.

The move is a win for Tesla, which had lobbied for months for lower taxes, but faced resistance from local carmakers.