Tesla to set up electric car manufacturing unit in Karnataka, India

Tesla CEO Elon Musk’s Tesla Inc will set up an electric-car manufacturing unit in Karnataka, India according to a government document.

“The U.S. firm Tesla will be opening an electric car manufacturing unit in Karnataka,” the state government said.

The statement was part of a wider document outlining the highlights of India’s budget to its people in the regional language of Kannada.

Last month, the electric automaker incorporated Tesla Motors India and Energy Private Limited with its registered office in the city of Bengaluru in Karnataka, a hub for international technology companies.

State Chief Minister B.S. Yediyurappa had said that Tesla would start its operations in India with an R&D unit in Bengaluru.

It was unclear for now if the Saturday statement was referring to the same unit.

Musk has tweeted few times about the company’s impending foray into India in recent years.

In October, Tesla CEO Elon Musk had suggested that the automaker will come to India in 2021 while responding to a tweet from India. “Next year for sure”.

Musk commented in March 2019 about entering India, in response to someone on Twitter who asked “What about India sir?”.

“Would love to be there this year. If not, definitely next!” he said.

In September, it was reported that Tesla is in talks with Karnataka government officials about opening a research center in Bengaluru.

India has been keen to decrease its oil dependence and reduce pollution, but its efforts to promote electric vehicles have been affected by a lack of investment in manufacturing and infrastructure such as charging stations. Though the country is catching up with such requirements.

India’s auto sector is recovering from the coronavirus crisis and automakers are seeking government support to push sales.

To boost investment, India plans to offer $4.6 billion in incentives to those who would be setting up advanced battery manufacturing facilities.