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Karnataka Govt. offers support to Tesla to setup manufacturing and R&D base

Aditya Chatterjee  | Updated: October 28, 2020, 12:28 PM IST

The poster brand for electric vehicles, Tesla, Inc. has revealed and confirmed its plans of entering the Indian market in 2021. The website of the same will go live in January 2021. To encash on this opportunity, multiple Indian states have started preliminary discussions with the popular EV brand to set up base at their respective locations. Among these states, the Karnataka Government has offered all the support to Tesla to set up a research and development centre along a manufacturing base in Bangalore.

Tesla Gigafactory

This was confirmed to CNBC-TV18 at the recently held Bengaluru Tech Summit by Deputy Chief Minister Ashwath Narayan. The minister stated that the government was working on attracting more investments to the state. "We have been speaking to each and every player, including big names such as Apple and Tesla, although Apple is already functioning here. We are talking to Asian countries and numerous developed countries to establish their base in Karnataka," he added.

In addition to Karnataka, even the Maharashtra Government has extended all its support and cooperation to Tesla for a similar setup. This was confirmed by Maharashtra state tourism minister Aaditya Thackeray, who along with industries minister Subhash Desai have already pitched Maharashtra as a preferred location for research and development facility and not a full-fledged manufacturing base or battery-manufacturing plant like a Gigafactory.

With a dedicated setup in place, Tesla, Inc could resort to bringing its range of EVs through the CBU route. However, with the bouquet of tax incentives that are applicable to electric vehicles in India, the pricing of Tesla EVs in India could be competitive compared to its IC rivals in the country. Amongst the Tesla's humble line-up, it is the Model 3 and the Model Y that should generate stronger traction for the EV brand in India.


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