Elon Musk’s global electric vehicles giant firm Tesla Inc will be finally entering the Indian market and gonna set up their first manufacturing unit in Karnataka, Chief Minister of the state BS Yediyurappa said on Saturday. The announcement was part of the list of benefits promised to Karnataka in the Union Budget.
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“American firm Tesla will set up the car-manufacturing unit in Karnataka,” the Chief Minister said, The statement came immediately after the CM said an industrial corridor was coming up at Tumakuru for Rs 7,725 crore that would generate 2.8 lakh jobs.
Breaking his silence after the news broke that Tesla has finally entered India by registering it as a company in Bengaluru, its CEO Elon Musk said on January 13 that he is on the way to fulfil his promise to let electric cars run on the roads of India.
Reacting to his millions of followers, Musk tweeted on making India his next destination: “As promised”.
Last month, the electric carmaker incorporated Tesla Motors India and Energy Private Limited with its registered office in the city of Bengaluru in Karnataka, a hub for global technology companies.
However, India may a difficult market for Musk to crack. Although India is Asia’s third-biggest economy and home to a large number of the middle class, it hasn’t rolled out the welcome mat for EVs, unlike neighbour China, where Tesla set up its first factory outside of the U.S. and now dominates electric-car sales. EVs account for about 5% of China’s annual car sales, compared to less than 1% in India.
India has been keen to reduce its oil dependence and cut down on pollution, but its efforts to promote electric vehicles have been stymied by a lack of investment in manufacturing and infrastructure such as charging stations.
Still, the Indian EV market is growing and could be worth almost $206 billion in the coming decade, according to a study by the CEEW Centre for Energy Finance, which noted an investment of more than $180 billion would be required by 2030 to achieve that.
To boost investment, India plans to offer $4.6 billion in incentives to companies setting up advanced battery manufacturing facilities.
