Tesla to begin manufacturing in India, Karnataka zeroed in to have the first plant
Global electric car manufacturing giant Tesla has decided to begin manufacturing in India and is finalizing an agreement on the same. Manufacturing electric vehicles in India for the first time will offer exceptional growth opportunities for the company as well as India.
Karnataka state has been zeroed in by Tesla Inc where its first manufacturing plant in India would be set up. The chief minister of Karnataka, B.S.Yediyurappa has confirmed the development. The automaker giant has been in negotiations with state officials for six months now and is said to have finalized a Bengaluru suburb location for its plant.
Tesla hasn’t yet confirmed the news nor has commented on Chief Minister’s statements. But people close to the proceedings have shared anonymously that Tesla is carrying out detailed work for setting up its R&D facility and office in the region.
Sources have said that Tesla has finalized Bengaluru in the region as it is emerging as aerospace and electric vehicles manufacturing. Downtown Bengaluru already has Tesla’s Indian unit and its registered offices.
Tesla’s CEO Elon Musk had confirmed in January that the big firm is entering India. Now the world’s richest man, Musk had tweeted on January 13 “as promised” in response to a Tesla-focused blog’s report that Tesla was in talks with several Indian State authorities regarding setting up of its offices, showroom, R&D unit, and possibly a factory in India.
But setting up a factory and extending the market of Tesla in India would come with its fair share of challenges. For instance, selling an electric vehicle (EV) in India which hasn’t yet welcomed this domain would be the first hurdle to pass.
Pedro Pacheco, senior research editor at Gartner Inc said, “Considering the price of Tesla, Elon Musk probably won’t be able to sell an EV to most of the population in emerging economies.”
“However, looking at the size of population and potential of economic growth, Tesla will probably target a fast-growing group of affluent individuals that, in absolute terms, compares quite favorably to what we see in many developed countries.”