Karnataka govt invites Elon Musk to set up Tesla unit

Bengaluru: Joining the growing list of States wooing SpaceX promoter Elon Musk to set up Tesla car manufacturing unit in Karnataka, State Minister for Industries Murugesh Nirani on Tuesday said the State was an ideal destination for electric cars.

In a tweet to the American billionaire, Nirani has said, "With over 400 R&D centres, 45 plus EV startups and EV clusters near Bengaluru, Karnataka has emerged as the EV hub of India. Karnataka would be an ideal destination to set up a Tesla plant. Bengaluru is already Tesla's maiden address in India.". Dr Nirani has also tagged Chief Minister of Karnataka Basavaraj Bommai.

This invitation comes in the wake of both Maharasthra and Telangana wooing Musk to set up shop in their States. However, Musk already started the India Motors and Energy Private Limited under his Tesla brand in Bengaluru in 2020.

Musk recently tweeted that the US-based firm is working through a lot of challenges with the government to launch its products in India.

"Still working through a lot of challenges with the government," Musk tweeted in reply to a Twitter user, who asked: "Yo @elonmusk any further update as to when Tesla's will launch in India? They're pretty awesome and deserve to be in every corner of the world!" In January 2021, Tesla registered its Indian arm amid indications that the company is set to enter the country's automobile market.

According to a regulatory filing, the firm registered Tesla India Motors and Energy Pvt Ltd with RoC (Registrar Of Companies) Bengaluru. The company has been registered as an unlisted private entity with a paid-up capital of Rs 1 lakh. In February 2021, the then Chief Minister B S Yediyurappa too had said that American firm Tesla will set up the car-manufacturing unit in the State. Last year, Tesla had sought a reduction in import duties on electric vehicles (EVs) in India.

The union heavy industries ministry had asked the electric car major to first start manufacturing its iconic electric vehicles in India before any tax concessions can be considered.