Tesla to set up electric car manufacturing unit in southern India
Billionaire Elon Musk’s Tesla Inc will set up an electric-car manufacturing unit in the southern Indian state of Karnataka, according to a government document seen by Reuters on Saturday.
“The U.S. firm Tesla will be opening an electric car manufacturing unit in Karnataka,” the state government said in a brief statement.
The statement was part of a broader document outlining the highlights of India’s budget to its people in the local language of Kannada.
Last month, the electric carmaker incorporated Tesla Motors India and Energy Private Limited with its registered office in the city of Bengaluru in Karnataka, a hub for global technology companies.
State Chief Minister B.S. Yediyurappa had then said in a tweet, which was subsequently deleted, that Tesla would start its operations in India with an R&D unit in Bengaluru.
It was not immediately clear if the Saturday statement was referring to the same unit.
Tesla and the office of Karnataka state chief minister did not immediately respond to Reuters’ request for comments.
Musk has tweeted several times about the company’s impending foray into India.
In December, the Tesla CEO confirmed in an exchange on Twitter that Tesla will launch in the country in 2021.
India has been keen to reduce its oil dependence and cut down on pollution, but its efforts to promote electric vehicles have been stymied by a lack of investment in manufacturing and infrastructure such as charging stations.
To boost investment, India plans to offer $4.6 billion in incentives to companies setting up advanced battery manufacturing facilities, Reuters reported last year.
Tesla to Start Making Cars in India, Targeting Vast Market
Tesla Inc. is closing in on an agreement to make electric vehicles in India for the first time, opening up a new growth opportunity after setting up production in China.
Tesla has picked Karnataka, a southern state whose capital is Bangalore, for its first plant, the state’s chief minister said over the weekend.
The automaker has been negotiating with local officials for six months and is actively considering car assembly in the suburbs of Bangalore, people familiar with the matter said.
The company is conducting due diligence for office real estate in the region and plans to set up an R&D facility, said the people, asking not to be named because the matter is private.
Tesla has focused on Bangalore because it’s shaping up to be a hub for electric vehicles and aerospace manufacturing talent, they said.
Tesla has incorporated its Indian unit and registered offices in downtown Bangalore.
Chief Executive Officer Elon Musk all but confirmed Tesla would enter India in January after months of speculation.
The world’s richest man on Jan. 13 tweeted “as promised” in response to a report on a Tesla-focused blog that the automaker was in talks with several Indian states to open an office, showrooms, a research and development center -- and possibly a factory.
As Chinese carmakers roll out competitive EV models and develop a diverse ecosystem, the country is “heading toward disrupting the current global auto industry landscape,” UBS Group AG analysts wrote in a report last month.
India has been making similar moves, but not yet on the same scale.
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