Chief Minister Yediyurappa said that the Tesla Manufacturing unit will be set up in Karnataka. In a recent media brief, he also praised the union budget presented by the Indian Government.
Is Tesla Really Starting a Manufacturing Unit in India?
After a continuous demand from India, he tweeted that Tesla will surely come to India in 2021. Tesla, the Electric car giant, has registered a Banglore based company in India. The name of the Indian company owned by Elon Musk is Tesla India Motors and Energy Private Limited. Its office is based in Lavelle Road in Bengaluru, as per the registration document.
The newly registered company by Tesla has three directors including David Feinstein who is also a senior executive in Tesla.
Elon Musk recently confirmed the arrival of electric cars in India. He wants to target the wealthy segment of India who can afford the electric car.
Karnataka Chief Minister Yediyurappa enthusiastically announced that the company will open a manufacturing unit of its electric car in Karnataka.
When contacted, Industry department officials said that till now there is no concrete evidence about the establishment of a manufacturing unit in India.
Earlier, there was news that Tesla is doing Research and Development in partnership with one of the auto engineering companies in Bengaluru. The name of that partnered company is yet not revealed.
Still, there is no response from Tesla related to the establishment of the Manufacturing unit. As per the earlier commitment, Tesla clearly told that it will export the vehicle. After a certain interval on the basis of market response, it will decide the further operations in India.
Talking about the latest development, Yediyurappa said that an industrial corridor will be started in Tumkir District at a cost of Rs 7725 crore. This corridor will boost the industrial offerings further in Karnataka.
He also said that the current budget has the potential to help the manufacturing unit a lot. Karnataka state is quite happy with the kind of fund and offerings it has got from the 2021 budget.
Future of Tesla Electric Car in India
Many experts told Musk that in a poor country like India there is no market for Tesla electric cars. He cleared this doubt through a reply to a blog post over Tesla fan sit Tesmanian.
“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.
As per the reports, the most demanding Tesla electric car Model 3 will be sold in India. The price will be in the range of 45-55 lakhs. Tesla has sold more than 5 lakhs units of Model 3 worldwide. It made Tesla the 5th largest company in US after dethroning Facebook.
Maruti Suzuki officials also recently said that the electric car market in India is not possible right now due to the availability of Lithium battery manufacturers. When asked about the competition with Tesla, Maruti said that we have no competition with Tesla due to different segments’ targets.