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Tesla’s India dreams starting to take shape, with Bangalore at centre

  • Electric carmaker will set up R&D facility before building production plant, possibly in Bangalore suburbs
  • CEO Elon Musk has not yet confirmed Tesla’s India plans, but the company has registered offices in downtown Bangalore

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Elon Musk has confirmed that Tesla is in talks to set up an office, showroom and research and development centre in India. Photo: Reuters
Tesla is closing in on an agreement to make electric vehicles in India for the first time, opening up a new growth opportunity after setting up production in China.
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Tesla has picked Karnataka, a southern state whose capital is Bangalore, for its first plant, the state’s chief minister said over the weekend. The carmaker has been negotiating with local officials for six months and is actively considering car assembly in the suburbs of Bangalore, people familiar with the matter said.

Tesla did not immediately respond to requests for comment and did not confirm the minister’s statement.

The company is conducting due diligence for office real estate in the region and plans to set up an R&D facility, said the people, asking not to be named because the matter is private. Tesla has focused on Bangalore because it is shaping up to be a hub for electric vehicles and aerospace manufacturing talent, they said. Tesla has incorporated its Indian unit and registered offices in downtown Bangalore.

Chief Executive Officer Elon Musk all but confirmed Tesla would enter India in January after months of speculation. The world’s richest man on January 13 tweeted “as promised” in response to a report on a Tesla-focused blog that the carmaker was in talks with several Indian states to open an office, showrooms, a research and development centre – and possibly a factory.

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That revelation sparked euphoria from locals, such as Nikhil Chaudhary, a 20-year-old student at the University of Delhi who helped start India’s Tesla fan club in 2019.

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