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Tesla India Electric Car Plant To Be Setup In Karnataka

"American firm Tesla will open its electric car manufacturing unit in Karnataka,"
CM Yediyurappa said in a statement in Kannada.

He also said an industrial corridor will be set up in Tumkur district, neighbouring Bengaluru, at a cost of Rs 7,725 crore.

Tesla India has been registered as Tesla India Motors and Energy Private Ltd – as per Ministry of Corporate Affairs

Earlier this year, Karnataka CM, B S Yediyurappa had tweeted that Tesla will commence operations with an R&D unit in Bengaluru. He had announced this on twitter. But soon after, he had deleted the tweet. A State Govt document, accessed by Reuters points to the fact that Karnataka will also be the home to Tesla’s car manufacturing plant.
Here is the tweet


This update comes on the back of statements from Gujarat and Maharashtra – both stating that they have invited Tesla to setup their Indian manufacturing unit in their respective state. Tesla is yet to confirm the report.

Tesla in India
Entry of the US based electric vehicle maker Tesla, into the Indian automobile sector, is particularly noteworthy as both the Central and State Governments are vying for higher adoption of green vehicle technology to conserve energy and preserve the environment.

Elon Musk’s Tesla Inc. has set up a subsidiary in Bengaluru with plans to introduce their range of electric cars in India later this year. The R&D Center is at Lavelle Road in Bengaluru and marks the company’s entry into the country.

With plans to launch a range of electric vehicles in India in 2021, Tesla has named Vaibhav Taneja, Venkatrangam Sreeram and David Jon Feinstein as its three directors.

Plans are afoot to launch the new Tesla Model 3 in India for a start, with local assembly and manufacturing to commence later.

First Tesla Car In India
It is rumoured that Tesla Model 3 will be the first to launch in India as it is the most affordable Tesla product. The all electric sedan will be brought in as a CBU initially. It will attract a 100 percent import duty unless the Government of India offers any concessions to Tesla so as to give electric vehicle entry a push. Standard range of 423 kms on a single charge.

Source
Source 2

[speed kills]

I think we need to wait for the official confirmation from Tesla. Yeddi is notorious for deleting his tweets.


I wonder if the recent discovery of 1600 tonnes of lithium in Mandya has had a role to play in Karnataka getting the manufacturing unit.

[girimajiananth]

This is good news. If this is really true, I would like to apply or an employment opportunity there.

As rightly said, it could be due to the recent discovery of lithium at Mandya.

[SKC-auto]

Originally Posted by speed kills

I wonder if the recent discovery of 1600 tonnes of lithium in Mandya has had a role to play in Karnataka getting the manufacturing unit.

No way, you can make hardly 2 lakh cars with 1600 tonnes of lithium, that is less than half year of production at one of their plants at full capacity.

[GTO]

Sure hope the news is true because the only way Tesla can make inroads is via the CKD / local assembly route. CBU imports will keep them as a niche player only. On the other hand, locally assembled Teslas will give a serious fight to the entrenched luxury car brands. I'm telling you, more than Volvo / Jaguar / others, the German marques fear Tesla the most. It has the cars, the tech and most important, brand equity. Half of Bollywood & corporate India will line up for Teslas.

[srini1785]

I surely welcome Tesla to india, to Karnataka but not to Bangalore. Get your plant to North, Coastal, Hyderabad Karnataka where people need jobs and development. Mangalore, Hubli-Dharwad, Bellary, Shivamoga - are all good choices. Why, even Mysore is OK, but not Bangalore. For the sake of Bengaluru itself, not Bangalore.

I am pretty sure, it would be the Model 3, since it's best suited for Indian markets. 600 odd kms per charge would suit even the most frantic travelling salesman for official use. What it would also create is a sense of awareness about EVs which is presently lacking. It wont be a common man's car in the near future, but aspirations would grow and that is what is needed. There would be an avalanche of bookings when the first car is seen on the streets and almost all of the who's who will need one at least for flaunting. So yeah, bring it on.

[dragracer567]

It’s really exciting that Tesla is finally coming to India though it’s probably not a gigafactory. The only issue I see for Tesla in India is the lack of Tesla superchargers. It’s a chicken and egg problem where sufficient cars must be sold to justify a network of superchargers but a network of superchargers are needed to sell cars. Also, India isn’t a very prosperous market, even apple was struggling till last year.

Nevertheless, I’m sure the ones who can afford it and has other cars in their garage for longer trips will be lining for the Tesla

[ksgehlot]

We need to be Patient. I am sure Tesla has a long-term plan for India. They are going to start in Phases. The first phase is to get the Manufacturing unit started and get the cars with the customers who really want them. Then slowly they will start with the superchargers. 5-6 years will see Tesla's involvement increasing over time in India.

[clementw]

Today's ET has an article that says that this is a political announcement and the same is not confirmed as yet. Will have to wait and watch.

[AZT]

Elon Musk thrives on over promising and then gradually backing out, it's his way of staying in the news. Even for the R&D centre I'd like to see how many people they employ, Tesla is notorious for getting govt concessions and then not living up to employment promises.

Would be happy to be proven wrong but this is one of those headlines you know is over hyped.

[ajmat]

Originally Posted by clementw

Today's ET has an article that says that this is a political announcement and the same is not confirmed as yet. Will have to wait and watch.

It is quite likely, the politicians have announced it but Tesla have been silent. Remember when the Kerala Government announced that BMW were to set up shop in Kerala. My late father in law was elated, I told him that it would never happen. He felt very insulted!

I digress, the current government is trying to gain some currency with the union government, hence the announcement for some attention.

It might be that Tesla takes on Mahindra Electrics shiny new unused plant

[landcruiser123]

I really hope Tesla starts their Indian innings off with the Model S, followed by the Model X. I do hope they focus on high quality + fat per-unit margins rather and volumes + low quality.

I'd rather have Tesla skip the current Model 3 and target India, China, and the European markets for the next hatchback in the lineup. https://electrek.co/2021/02/15/tesla...-dope-or-nope/

[Sudarshan42]

I'd wait for an official confirmation. The tweet screenshot posted can't be found on Yeddy's official Twitter handle (he deleted it, as per one of the quoted sources). Could be some random political grandstanding. Happy if they do, but it's Musk- he can change his decision on a whim.

[sagarpadaki]

If they do setup, I hope they set it up somewhere in the central Karnataka region around Chitradurga. There are vast flat land available and good climate. There are multiple tier 2/3 cities nearby and the factory can provide jobs for many and help the cities prosper.

[srishiva]

I think the factory if it comes will be towards Tumkur. There are already some Industrial areas there and will be away from Bengaluru which will be good. Connectivity is also good from Bengaluru and to airport bypassing the city.

I hope Tesla says something. Maharastra also thinks it will come there !