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    Tesla India Electric Vehicle Manufacturing Plant Proposed in Karnataka Report

    February 14, 2021
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    Key Takeaways

    • Tesla India Motors and Energy Private Ltd has been officially registered, signaling Tesla's entry into the Indian EV market with an R&D center in Bengaluru.
    • Tesla plans to launch the Model 3 in India in 2021, starting with completely built units (CBU) and eventually moving to local assembly and manufacturing, featuring a standard range of 423 km per charge.
    • The southern region of India, particularly Bengaluru, is emerging as a key hub for EV development, with major automotive players and startups like Ola and Ather Energy increasing their focus on electric vehicle production.

    Key Takeaways

    • Tesla India Motors and Energy Private Ltd has been officially registered, signaling Tesla's entry into the Indian EV market with an R&D center in Bengaluru.
    • Tesla plans to launch the Model 3 in India in 2021, starting with completely built units (CBU) and eventually moving to local assembly and manufacturing, featuring a standard range of 423 km per charge.
    • The southern region of India, particularly Bengaluru, is emerging as a key hub for EV development, with major automotive players and startups like Ola and Ather Energy increasing their focus on electric vehicle production.

    Tesla Establishes Presence in India with New Subsidiary

    Tesla has officially registered its presence in India under the name Tesla India Motors and Energy Private Ltd, as confirmed by the Ministry of Corporate Affairs. The electric vehicle giant has set up its operations in Bengaluru, marking a significant step toward entering the Indian market.

    Initial Announcements and State Competition

    Earlier this year, Karnataka Chief Minister B S Yediyurappa had announced on Twitter that Tesla would begin operations with an R&D unit in Bengaluru. However, the tweet was later deleted. According to a state government document accessed by Reuters, Karnataka is also slated to host Tesla’s future car manufacturing plant.

    This development comes amid competing statements from Gujarat and Maharashtra, both of which have claimed to have invited Tesla to establish their Indian manufacturing base in their respective states. As of now, Tesla has not officially confirmed these reports.

    Strategic Entry into the Indian Market

    The entry of Tesla, the U.S.-based electric vehicle manufacturer, into India is particularly significant at a time when both central and state governments are actively promoting green technology to reduce carbon emissions and support sustainable energy solutions.

    Tesla’s Indian subsidiary, based in Bengaluru, plans to introduce its electric vehicle lineup in India later this year. The company’s R&D center is located on Lavelle Road in Bengaluru. The subsidiary has a paid-up capital of ₹1 lakh and an authorized capital of ₹15 lakh.

    Leadership and Future Plans

    Tesla has appointed three directors for its Indian operations: Vaibhav Taneja, Venkatrangam Sreeram, and David Jon Feinstein. The company is preparing to launch the Tesla Model 3 in India initially, with plans for local assembly and full-scale manufacturing to follow.

    The Model 3 is speculated to be Tesla’s first offering in India due to its relatively affordable price point compared to other Tesla models. It will initially be imported as a Completely Built Unit (CBU). However, it could face a 100 percent import duty, unless the Indian government provides tax concessions to encourage electric vehicle adoption. The Model 3 offers a standard range of 423 kilometers on a single charge.

    Southern India Emerging as an EV Hub

    Bengaluru and the broader southern region of India are rapidly becoming a key hub for automotive engineering and electric vehicle development. Major global automotive players such as Daimler, Bosch, Continental, and Fiat Chrysler already have centers in the region.

    The electric vehicle segment is also gaining momentum, with several mobility startups — including Ola, Uber, Bounce, and Vogo — planning to expand their electric vehicle fleets.

    Ola’s Big EV Plans

    Ola is preparing to establish what could become the world’s largest electric scooter manufacturing plant in Tamil Nadu. The company has signed a Memorandum of Understanding (MoU) worth ₹2,400 crores for this initiative.

    Ather Energy’s Expansion

    Ather Energy, another prominent electric two-wheeler manufacturer, has shifted its production base to Hosur, Tamil Nadu. The company aims to produce approximately 1 lakh electric two-wheelers annually from this facility.

    Conclusion

    With Tesla’s official registration in India and growing interest from both the government and private sector in electric mobility, the country is poised for a transformative shift toward sustainable transportation. The southern region, particularly Bengaluru and Tamil Nadu, is at the forefront of this electric vehicle revolution.

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