Tesla in Talks with 5 States of India to Launch Operations as World Expansion Accelerates

by Eva Fox January 12, 2021

Tesla in Talks with 5 States of India to Launch Operations as World Expansion Accelerates

Photo credit: Backstage With Millionaires

Tesla is in contact with the governments of the five states of India, and is exploring the possibility of establishing a manufacturing and R&D center in the country.

Since autumn, more and more information has appeared in the media that Tesla is looking for ways to enter the Indian market. Representatives of several states have tried to attract a company to host their office with them. At the moment, Tesla is in contact with the governments of five states in India, and is exploring the possibility of setting up a manufacturing and R&D center in the country, CNBC-TV 18 reports.

In October 2020, Tesla CEO Elon Musk confirmed that Tesla is going to enter the Indian market in 2021. He later said that the order configurator would be launched in the country at the beginning of 2021, which was later confirmed by the Minister of Road Transport & Highways of India, Nitin Gadkari.

The CNBC-TV 18 report indicated that Tesla is actively consulting with state governments, and is in the process of seeking an office location. The company reportedly hired a global consulting firm to do this.

State governments in Maharashtra, Gujarat, Andhra Pradesh, Karnataka, and Tamil Nadu have held talks with Tesla. The Karnataka government has already provided Tesla with several location options for setting up production, R&D, and headquarters.

“Government of Karnataka is seriously interested in inviting Tesla. We have given them location options for different segments. Tumkur is one of the locations that has been offered,” said an official who didn’t wish to be named.



Tesla is expected to hit the Indian market with Model 3. The expected price is about INR 55-60 lakh, which is about $75,000 - $81,500. All cars will be CBU (Completely Built-Up) and will be imported via sea route into India. The companies that do not have either an assembly plant or a platform for assembly, provide cars to the customers only by CBU. It is reported that Tesla will initially be able to deliver only 2,500 units.

© 2020, Eva Fox. All rights reserved.

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