Tesla lands on Karnataka for India factory: Chief Minister

Tesla will establish its presence in India with a production facility in Karnataka, a state located in the southwest region of the country, according to Chief Minister B. S. Yediyurappa.

Tesla India Production Plant

It has been widely speculated that Tesla’s next foreign production plant would be set up in India. For years, Indian fans of the electric automaker have pressed CEO Elon Musk for details regarding the company’s entrance into the country. In late 2020, Musk indicated that 2021 would finally be the year it would happen.

India has astronomical import taxes that make Tesla’s cars unaffordable for most of the country’s population. For this reason, those interested in buying the cars have wanted a production facility in the country, and in January, it was finally confirmed.

January documents submitted to India’s Ministry of Corporate Affairs (MCA)showed Tesla had officially applied for several business licenses to sell automotive and energy products. These requests were granted by the MCA, and Tesla was set to decide on a location for a production facility in the coming weeks.

Now, it seems that the plant will be in Karnataka, which has been the frontrunner for the factory for several months.

Next year for sure

— Elon Musk (@elonmusk) October 2, 2020

Karnataka Secured

Now, Karnataka Chief Minister B. S. Yediyurappa states that Tesla will open its production facility in Karnataka after a statement that listed benefits in the Union Budget.

Yediyurappa said:

“American firm Tesla will open an electric car manufacturing unit in Karnataka.”

Until now, no politician has confirmed explicitly that Tesla has chosen a specific location for its next production plant. This is the first instance that has seen a major government member confirm the location of the factory.

Following Yediyurappa’s statement, Chief Secretary of Commerce and Industries in Karnataka, Gaurav Gupta, stated that Tesla has not outlined a timeframe or manner for the new plant, but that months of contact with the automaker have finally resulted in a decision.

Among Karnataka, Tesla was also interested in Andhra Pradesh, Tamil Nadu, and Maharashtra, according to the News Minute. Maharashtra Industries Minister Subhash Desai said in a statement last week that Tesla was still considering his region as well.

Desai was frustrated with talks that Karnataka had already been chosen, because at the time, Tesla hadn’t landed on a specific area for the facility. Karnataka seems to have secured Tesla’s first Indian factory, but there is always the possibility it could establish more than one as a hub for production for Africa and South Asian markets.

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