Tesla to open manufacturing unit in Karnataka, will start selling cars in India in 2021

Tesla Inc will set up an electric car manufacturing unit in the southern Indian state of Karnataka, Chief  Minister BS Yediyurappa said in a statement on Saturday. "American firm Tesla will open its electric car manufacturing unit in Karnataka," Mr 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.

On January 8, the  American electric car maker registered a company named Tesla India Motors and Energy in Bengaluru. The company has an authorised capital of Rs 15 lakh and has its registered office on Lavelle Road in the city. Tesla has also set up a research and development unit in the city.

The Indian unit has three directors including David Feinstein, who is currently a senior executive at Tesla, according to his LinkedIn profile.

Tesla Inc founder Elon Musk, the world’s second richest man, had indicated last year that Tesla would start selling its cars in India in 2021.

Elon Musk had tweeted several times in recent years about his India plans. In October last year, he had said, "Next year for sure" in reply to a post with a photograph of a T-shirt with the message: "India wants Tesla".

A blog on the Tesla fan site Tesmanian, to which Elon Musk once replied in a tweet, explained Tesla's focus on a 'wealthy segment' in a country where there are vast economic disparities.

"Many people assume that if most of the country's population is poor, then there is no market for Tesla. However, they need to understand that the company is not aimed at selling cars to the entire population of India. In fact, out of 1.387 billion people, the producer is targeting a smaller (relative to the entire population), but a rather wealthy segment of the population," it says.

The first Tesla product to be sold in India will be the Model 3 sedan, according to reports.

Union road transport and highways minister Nitin Gadkari had said in December that Tesla will commence sales in India in 2021, and would evaluate assembly or manufacturing based on the market response it receives.