Tesla will set up an electric car production unit in South India

BENGALURU (Reuters) – Billionaire Elon Musk’s Tesla Inc will set up an electric car manufacturing facility in the South Indian state of Karnataka, according to a government document spotted by Reuters on Saturday.

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

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

The statement was part of a broader document outlining the highlights of the Indian budget to the population in the local language of Kannada.

Last month, electric carmaker Tesla Motors India and Energy Private Limited established with headquarters in Bengaluru city of Karnataka, a hub for global technology companies.

Secretary of State BS Yediyurappa had then said in a tweet, which was subsequently deleted, that Tesla would start operations in India with an R&D unit in Bengaluru.

It was not immediately clear whether Saturday’s statement was referring to the same unit.

Tesla and the office of the Prime Minister of Karnataka did not immediately respond to Reuters’ request for comment.

Musk has tweeted several times about the company’s upcoming foray to India. In December, Tesla’s CEO confirmed in an exchange on Twitter that Tesla will launch in the country in 2021.

India was keen to reduce its dependence on oil and reduce 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 provide $ 4.6 billion in incentives to companies setting up advanced battery manufacturing facilities, Reuters reported last year.

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

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