Tesla to establish electric car manufacturing unit in South India


BENGALURU (Reuters) – Billionaire Elon Musk’s Tesla Inc will establish an electric car manufacturing unit in the southern Indian state of Karnataka, according to a government document seen by Reuters on Saturday.

FILE PHOTO: Tesla Inc CEO Elon Musk dances onstage during a Tesla China-made Model 3 car delivery event in Shanghai, China, on January 7, 2020. REUTERS / Aly Song / File Photo

“The US firm Tesla will open an electric car manufacturing unit in Karnataka,” the state government said in a short statement.

The statement was part of a larger document outlining the highlights of India’s budget for its people in the local Kannada language.

Last month, the electric car maker incorporated Tesla Motors India and Energy Private Limited headquartered in the Karnataka city of Bengaluru, a hub for global technology companies.

Chief Minister of State BS Yediyurappa 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 whether Saturday’s statement referred to the same unit.

Tesla and the Karnataka state prime minister’s office did not immediately respond to Reuters’ request for comment.

Musk has tweeted multiple 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 wanted to reduce its dependence on oil and pollution, but its efforts to promote electric vehicles have been hampered 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.

Report from Aakriti Bhalla and Bhargav Acharya in Bengaluru; Editing by Gareth Jones and Steve Orlofsky

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