CM has made it official: Tesla to build up a manufacturing unit in Karnataka


Karnataka Chief Minister BS Yediyurappa officially announced on Saturday that Tesla, owned by Elon Musk, will set up an electric car manufacturing plant in the province. The declaration was part of the list of benefits offered to Karnataka in the budget of the Union. Yediyurappa said that the American firm Tesla will be opening an electric car production plant in Karnataka. The announcement came immediately after the CM said that the industrial corridor was coming up in Tumakuru at the cost of Rs 7,725 crore, which will create 2.8 lakh jobs.

Tesla registered its subsidiary in Bengaluru last month named Tesla India Motors and Energy Private Limited. Yediyurappa then tweeted that the electric car giant would open its R&D unit in the state capital before deleting it quickly.

The news of Tesla coming to India was first announced by Nitin Gadkari, the Union Minister for Road Transport and Highways. “Tesla is initially expected to sell its vehicles in India, and it would also look at setting up a manufacturing facility at a later stage depending on demand,” Gadkari had told The Times of India.

The TOI article suggested that Tesla would enable pre-bookings for its Model 3 car and deliveries by June. It is doubtful that the company would create relationships with dealers to market the vehicle.

Although Model 3 is one of Tesla’s most affordable cars, it will not be cheap in India and will arrive as fully built units (CBUs) with a high import duty charge. Though there is no price confirmation, reports say that one Tesla Model 3 would cost Rs 55 lakh in India.

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