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Tesla Inc will set up an electric-car factory in Karnataka, a southern state in India, according to a government document outlining the highlights of the country's budget.
State Chief Minister B.S. Yediyurappa subsequently tweeted that Tesla would start its Indian operations with an R&D unit in Bengaluru, Karnataka. The tweet was deleted.
In December, Tesla CEO Elon Musk confirmed via Twitter that Tesla will be launched in India in 2021.
The following month, Tesla Motors India and Energy Private Limited was incorporated. Its registered office was in Bengaluru in Karnataka, a hub for global technology companies.
India has been pursuing avenues to minimize pollution and reduce oil dependence but efforts to promote electric vehicles hit a snag with a lack of manufacturing investments and infrastructure such as charging stations.
To encourage investments, India plans to offer $4.6 billion in incentives to companies setting up advanced battery manufacturing facilities.
