Tesla set to take on the Indian market: Sets up facilities in Karnataka

India is getting its first Tesla plant, as the car company is looking to make in-roads into the Asian country, according to the Press Trust of India. The host state is Karnataka.

Elon Musk, an avid Twitter user, hinted at this last month in a tweet response, saying his company was in consultation with several states in India for where to set up shop. Apparently Karnataka emerged the preferred candidate.

The proposed facilities will include an office, showrooms and research and development centers. There was also talk of India’s first Giga Factory but that would have to wait. Musk wants to test the waters with sales before making that commitment.

The announcement of the deal was made by Karnataka’s chief minister, B S Yediyurappa, as part of developmental projects promised in the state’s budget.

Tesla had registered an Indian subsidiary in January, named Tesla India Motors and Energy in the city of Bengaluru, joining a long list of global tech companies operating in the city.

India represents a promising territory for Tesla, as electric vehicles account for only 1% of annual car sales. The automaker plans to start selling cars in the country this year.

image from www.tesla.com

India has been working towards reducing its dependence on oil for energy and cut down on pollution. The government has agreed to offer incentives worth $4.6 billion to companies willing to invest in research and production of batteries in the country. Interestingly, the choice of name for the Indian subsidiary suggests Tesla will be involved in more than just vehicles in the country.

Hopefully, Tesla will be able to accelerate the acceptance of environmentally friendly electric vehicles in the Land of Spices.

Written by D.O. for www.ShargeMe.blog