Tesla takes another step towards launch in India

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Tesla took one step closer to launching in India later this year by registering a company in the country, a regulatory document showed on Tuesday.

Tesla Motors India and Energy Private Limited were formed on January 8, based in the southern city of Bengaluru, a hub for several global tech companies.
The lawsuit shows the Indian unit has three directors, including David Feinstein, who is currently a senior executive at Tesla, according to his LinkedIn profile.

Tesla takes another step towards launch in India

Tesla took one step closer to launching in India later this year by registering a company in the country, a regulatory document showed on Tuesday.

Tesla Motors India and Energy Private Limited were formed on January 8, based in the southern city of Bengaluru, the hub of several global tech companies.

The lawsuit shows the Indian unit has three directors, including David Feinstein, who is currently a senior executive at Tesla, according to his LinkedIn profile.

Indian Transport Minister Nitin Gadkari told a local newspaper in December that the US electric car maker would start with sales, then move on to assembly and manufacturing.

Tesla chief executive Elon Musk has tweeted several times in recent years, including in October 2020, about an impending incursion into India.

The change comes at a time when Indian Prime Minister Narendra Modi is promoting the production and use of electric vehicles to reduce the country’s dependence on oil and reduce pollution.

But efforts have been hampered by a lack of investment in manufacturing and infrastructure, such as charging stations.

To boost investment, India plans to offer $ 4.6 billion in incentives to companies that create advanced battery manufacturing facilities, according to a government proposal seen by Reuters.

Why Tesla chose to open a store in Bangalore

The capital of Karnataka is also the EV capital of the country, with many companies already having R&D units in the city, thanks to its huge talent pool. The proactive policies of state governments in creating an EV ecosystem may also have helped tip the scales in Bengaluru’s favor.

After several years of dilly-dally, Tesla Inc finally made its way to India with the establishment of its subsidiary in India and a head office in Bangalore. Karnataka Chief Minister BS Yediyurappa took to Twitter and welcomed Tesla Chief Elon Musk to the state, saying the electric vehicle giant would establish a research and development (R&D) unit in Bengaluru. .

With over half a dozen automakers, Bengaluru is home to one of the country’s largest technical and R&D centers. Mercedes-Benz, Great Wall Motors, General Motors, Continental, Mahindra & Mahindra, Bosch, Delphi and Volvo have operational R&D units in Bengaluru.

The government of Karnataka claims that more than 45 electric vehicle start-ups are based in Bengaluru, including Mahindra Electric, Ather Energy and Ultraviolette Automotive. Many of them focus on two-wheeled vehicles. Ola Electric, which recently announced its entry into the electric two-wheeled vehicle segment, is also based in Bengaluru.

The creation of an R&D unit in India signals Tesla’s intention to benefit from the country’s vast pool of IT and engineering talent. Automakers have used India’s research and development center to work on projects not only for India, but also for those designed for the United States, Europe, and China.

Talent pool and political support in Karnataka

Software engineers at Mercedes-Benz Research and Development in Bengaluru are working on projects such as driverless cars. Great Wall Motors of China has also launched its R&D unit to work with electric vehicles in the capital of Karnataka. In addition to the computer and engineering talent available in the state, Karnataka’s policy for the electric vehicle ecosystem may have drawn Tesla to Bangalore.

Karnataka has allocated more than $ 3 billion for the establishment of an electric vehicle center, comprising electric vehicle manufacturing bases and a lithium-ion cell and battery manufacturing unit in Hubbali and Dharwad, 400 km away. from Bengaluru. The state also offers incentives such as a 100% stamp duty exemption, reimbursement of land conversion costs, and an investment promotion grant, to name a few.

While Bengaluru is traditionally known for its IT workforce, home to software giants Infosys, Tech Mahindra, Wipro, and Accenture, other cities have faced an uphill battle. Hyderabad and Chennai have attracted investment from automotive companies to set up R&D centers in recent years.

Fiat Chrysler Automobiles (FCA) India has planned a $ 150 million investment in the creation of a global digital hub in Hyderabad. The Hyundai Motor Group, which includes Kia Motors, has an operational R&D center in Hyderabad. The Renault-Nissan alliance has a nascent engineering and design center in Chennai. The PSA Group in France has also set up an R&D center in Chennai.

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