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Tesla in Talks With Karnataka Govt, to Enter Indian Market by 2020

Tesla, the EV giant, is in talks with the Karnataka government. The company is aiming to meet the deadline of Elon Musk to enter the Indian market by the end of 2020. The follow up discussions are scheduled for this month. Our honorable Prime Minister has also shown interest in the company.

Elon Musk, CEO of Tesla

Tesla is an American EV, electric vehicle, and clean energy company (1). It is initiating talks with the Karnataka government to set up its research and innovation hub in Bengaluru. The Elon Musk-led firm held a discussion with the Karnataka government officials on 10 September to set up the facility, as per the sources. The talks are at introductory phase. 

There are expectations that a follow up meeting will be held later this month. The government officials may give a detailed proposal to the executives of Tesla. India will be the following country to operate the research hub of Tesla outside the US. 


In July 2020, Elon Musk indicated that it’s luxury electric cars will soon come to India, hopefully. He also revealed his intentions to launch Tesla cars on India’s roads by 2020, during his interaction with IIT Madras students. Our honorable Prime Minister has also shown interest in the company. Meanwhile, Nitin Gadkari, the Transport Minister, has also offered land to Tesla near the port for ease in the technology import. 


Several Attempts Made By Tesla to Enter Indian Market

For a long time, Tesla has been trying to enter the Indian market. However, their attempts have been extensively unsuccessful because of the lack of policies, markets, and infrastructure for electric vehicles. The Indian government has taken several actions to promote e-mobility in India via taxation and budgetary guidelines. However, there are several obstacles in the pathway. 

In 2019, India’s government had reduced the customs duty for components and parts of EV to 5%. A pre-assembled EV will get 15% taxation in India. On the other hand, the one assembled in India will get 10% taxation. The CBIT, Central Board of Indirect Taxes, has dissolved exemption of EV batteries customs duty. The move aims to increase the production of EV batteries in India, in the long, it will help the EV ecosystem of India and initiatives for Make in India. 

However, there has been no significant development in India regarding the manufacturing of EV and its parts, especially for Tesla’s technology. Several startups in India are increasing the pace of getting EV in the Indian market, there is a lack of infrastructure to accommodate EV on the country’s road. 

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Rucha Joshi is fueled by her passion for creative writing. She is eager to turn information into action. With her hunger for knowledge, she considers herself a forever student. She's currently working as a content writer and is always interested in a challenge.


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