Tesla to set up electric car manufacturing unit in Karnataka, says CM BS Yediyurappa

Electric vehicle (EV) maker Tesla would set up its electronic car manufacturing unit in Karnataka, Chief Minister BS Yediyurappa said on February 13. The announcement was part of a release listing benefits for the state under the Union Budget.

“American firm Tesla will open a electric car manufacturing unit in Karnataka,” Deccan Herald quoted Yediyurappa as saying.

The confirmation comes a month after the Elon Musk-led company registered its subsidiary Tesla India Motors and Energy Private Limited in Bengaluru.

The entity was listed with three directors – Vaibhav Taneja, Venkatrangam Sreeram and David Jon Feinstein. Taneja is also the Chief Accounting Officer of Tesla.

Yediyurappa had tweeted on January 13, welcoming Tesla in India shortly after the subsidiary was registered in Bengaluru. However, the he ended up deleting the tweet within hours.

The entry of Tesla in India comes at a time when the government is increasing its focus on the use of EVs. The choice of Bengaluru as the location to set-up the manufacturing firm is also considered to be strategic.

With more than half a dozen automotive companies, Bengaluru houses one of the biggest clusters of technical and R&D centres in the country. Mercedes-Benz, Great Wall Motors, General Motors, Continental, Mahindra & Mahindra, Bosch, Delphi and Volvo have operational R&D units in the city.

The Karnataka government claims that more than 45 EV startups are based in Bengaluru, including Mahindra Electric, Ather Energy and Ultraviolette Automotive. Many of these are focused on two-wheelers.

Setting up an R&D unit in India signals Tesla’s intention of benefiting from the extensive IT and engineering talent pool generated by the country. Auto companies have used the India R&D centre to work on projects not only destined for India, but even those projected for the US, Europe and China.