Tesla to Build an Electric Vehicle Factory in Karnataka, India, Chief Minister BS Yediyurappa Says

[TruckElectric]

by Eva Fox February 13, 2021

India Tesla

Photo: Giga Berlin / GF4Tesla, build GIGABERLIN/YouTube
Tesla will build an electric vehicle factory in Karnataka, Chief Minister BS Yediyurappa said today. The statement was a part of the list of benefits promised to Karnataka in the Union Budget. This is the first announcement that an American manufacturer will build a manufacturing facility in Karnataka.

"American firm Tesla will open an electric car manufacturing unit in Karnataka," Yediyurappa said in a statement.

Tesla registered as Tesla India Motors and Energy Pvt Ltd in Bangalore. The company has so far appointed three directors: Vaibhav Taneja, Venkatarangam Sriram, and David John Feinstein. Taneja is CFO at Tesla, while Feinstein is Global Trade Director at Tesla, Trade Market Access.

Earlier, BS Minister Yediyurappa tweeted that the electric vehicle manufacturer would open an R&D center in Bangalore, but the tweet was deleted a few hours later.

Gaurav Gupta, Additional Chief Secretary, Commerce and Industries in Karnataka told The News Minute that the timeframe and manner in which Tesla will operate in India is yet to be decided. He said that Tesla's announcement followed months of correspondence between the state government and the electric car manufacturer. Tesla was in contact with five state governments in India including Andhra Pradesh, Tamil Nadu, and Maharashtra.

ABOUT THE AUTHOR

EVA FOX
I'm a big fan of Tesla, as I worry about the future for my child and for future generations. Tesla's mission is to accelerate the world's transition to sustainable energy and I'm passionately striving for this goal. I’m tired of the daily deception from Tesla’s haters against the company, so I strive to spread true information and the latest news about Tesla.


SOURCE: TESMANIAN

 

[MEDICALJMP]

That would be outstanding for them. This may be the start of the $25,000 Tesla car that has been rumored. If India and China start production on them we may see 5,000,000 Teslas being sold yearly by 2025. This was likely a big reason why Tesla had that last $5 billion stock sale last year.

 

[flowerlandfilms]

...it would be smart to have an Asian backup factory...
...I know Tesla has a privileged position there...
...but China politically is heading in a very unseemly direction...

 

[Crissa]

...but China politically is heading in a very unseemly direction...

I don't see any change in their actions or direction in the last thirty years.

But it makes sense to have multiple factories. There's a massive mountain range between them and trade barriers.

-Crissa

 

[flowerlandfilms]

I don't see any change in their actions or direction in the last thirty years.

But it makes sense to have multiple factories. There's a massive mountain range between them and trade barriers.

-Crissa

...my main concerns about recent history are Xi Jin Ping declaring himself President for Life...
...the Uighur concentration camps...
...increased hostility in international relations...
...and their refusal to accept that Taiwan is no longer a part of China...
...I believe Hong Kong was a dry run for Taiwan to see if anyone would stop them...
...I hope I'm wrong...

 

[Crissa]

...my main concerns about recent history are Xi Jin Ping declaring himself President for Life...

That's a change from the 90s, but hardly a change in the current status quo.

...the Uighur concentration camps...

New for the Uighurs isn't new for the country, though. Not their first concentration/re-education camps.

...increased hostility in international relations...

Where? Seems like the same amount as usual.

...and their refusal to accept that Taiwan is no longer a part of China...

They never accepted that. That's status quo for the last 70 years.

...I believe Hong Kong was a dry run for Taiwan to see if anyone would stop them...

The Taiwanese would. Hong Kong was administered by the Central Chinese government, Taiwan isn't.

-Crissa

 

[MEDICALJMP]

Rumors of Tesla (TSLA) factory in India intensify as local chief minister weighs in

The rumors of a Tesla factory coming to India are intensifying as a local chief minister appears to confirm Tesla’s plan to build electric vehicles in Karnataka.

Tesla has had a long history of flirting with the idea of entering the Indian market.
In 2016, CEO Elon Musk said that Tesla had plans to enter the Indian market, but those plans have been delayed.


Tesla apparently did make some inquiries about establishing a presence in the country, but there was some confusion over Tesla’s ability to even import its vehicles in India back then due to regulations forcing it to have manufacturing capacity in the country before being able to import its vehicles.


Prime minister Narendra Modi even met with Musk during that time and later, India’s transport minister visited Tesla to offers up land to establish a presence in India.


Nothing came out of those efforts to bring Tesla to India until more recently.


Over the last few months, there have been more rumors of Tesla looking to establish manufacturing and/or research and development in India.


Local government officials have revealed talks with Tesla executives, and last month Tesla officially incorporated an Indian company in Bengaluru, the capital of India’s southern Karnataka state.


Now as part of a list of benefits promised to Karnataka in the Union Budget, the state’s chief minister, BS Yediyurappa, seemed to confirm Tesla’s plan to bring some sort of manufacturing effort in India (via The News Minute):

American firm Tesla will open a electric car manufacturing unit in Karnataka…

However, it is not completely clear if this “manufacturing unit” is actually going to be a factory.


Yediyurappa had previously tweeted that Tesla would establish a research and development center in his state before deleting the tweet.


Previously, during the reported talks with the government, several sites for a Tesla factory to produce electric cars and batteries have been proposed.

https://electrek.co/2021/02/15/rumors-tesla-tsla-factory-india-intensify/

 

[MEDICALJMP]

https://www.vehiclesuggest.com/tesl...xp1k4QH7UujksVEvk8S881s2RQP5nTv547X7Hcr3YxBT4

Tesla To Set Up Manufacturing Unit in Karnataka, Asked Texas Employees To Move To India



ByMihir Tasgaonkar
Feb. 15, 2021


India is a market with largely untapped potential for electric vehicles right now. Currently, there are a handful of electric vehicles on the market, like Hyundai Kona, Tata Nexon and MG ZA. The charging infrastructure is also not well-developed, and this has prompted the government to take steps towards backing electric mobility. All in all, the electric scenario doesn’t seem all that bright at the moment.

All this could, however, change in the coming months. Tesla Motors announced early this year that they will be entering the Indian market, and this could definitely make some waves. The Elon Musk-led company is a very well-established brand in the field of electric vehicles, and its entry could change the electric mobility scene in India.

Tesla To Set Up Manufacturing Unit in Karnataka
Yesterday, Karnataka Chief Minister BS Yediyurappa confirmed that Tesla will set up a manufacturing unit in the state. He said, “American firm Tesla will open an electric-car manufacturing unit in Karnataka.” The announcement was part of the list of benefits promised to Karnataka in the Union Budget.


The plan to have a manufacturing unit in Karnataka makes sense. The southern state has become an electric vehicle hub in India. A number of companies like Mahindra Electric have their headquarters in Bengaluru. Start-ups like Ather Energy, Sun Mobility and Ola Electric are based in the city as well. Karnataka was also the first state to have an electric vehicle policy, and other states followed suit later.

Bengaluru is a hub for global technological companies, and Tesla has also set up an office in the city last month. A manufacturing unit in the same state is sensible, as laws can change across states. Moreover, there is a scope to set up the manufacturing unit in northern Karnataka, somewhere near Dharwad, which has a lot of industrial companies right now.

Tesla-India History
Elon Musk mentioned in July 2020 that Model 3 will reach India very soon. On 3rd October last year, Tesla CEO Elon Musk had replied to a tweet, saying that Tesla will come to India “next year for sure”. Musk then announced that Tesla would be coming up with a Booking Order Configurator for the Indian customers. This would go live in January 2021. While most experts felt that Tesla will make its India entry through Bengaluru, as it has become the EV hub of the country, the Maharashtra government also invited the Californian automaker to set up camp.

Thus, in the past few months, there have been rapid developments in Tesla’s entry into India. Tesla’s intentions of building a manufacturing unit in India were clear from the beginning, and this announcement will please many.

Why Having a Manufacturing Unit in the Country is Beneficial
India is one of the largest markets for automobiles in Asia. However, a huge percentage of the citizens are part of the working middle class. This means that many people cannot afford Tesla vehicles. There was a similar situation in European countries and the United States a few years back as well. But the introduction of the Model 3 changed the dynamics of Tesla’s market.


Model 3 is a mid-sized family sedan, which starts roughly at $40,000. Converted into Indian currency, that is approximately ₹30 lakhs. However, the import duties on completely built units (CBUs) is very high at the moment. The addition of this import duty will take this price to ₹55-60 lakhs if Tesla has to export all deliveries into India.

But the addition of a manufacturing unit to Tesla’s armoury in India might solve this problem. Tesla can buy components from local manufacturers, or import them from outside. This will directly affect the selling price of the Model 3, and make it more affordable. The Model S and Model X, though, will remain the premium models.

Moreover, Tesla has also announced that a $25,000 vehicle is coming to its roster. While the launch of this vehicle is still a long way off, this car will get a very good market in India, where small-car sales dominate the market. An electric vehicle under ₹20 lakhs will receive a resounding response from consumers, especially considering the constant hikes in petrol and diesel prices in the country.

Finally, a Tesla manufacturing unit could also include charging infrastructure. While Tesla hasn’t confirmed this yet, its entry into the country will see a dramatic improvement in electric vehicle charging infrastructure.

Indian Government Promoting Electric Mobility
China and India have slightly similar consumer demands for automobiles. But China boasts of close to 5% market share for electric mobility, while for India, it is less than 1%. This has pushed the government to promote the use of electric vehicles through various schemes and policies.

India plans to offer $4.6 billion in incentives to companies setting up advanced battery manufacturing facilities. This will promote the entry of battery manufacturing companies into India, which, of course, will aid the current electric vehicle manufacturers.

Under the new regime, GST (goods and services tax) on electric vehicles is reduced from the existing 12% rate to 5% as against the 28% GST rate with cess up to 22% for conventional vehicles. The Ministry of Power has allowed the sale of electricity as a ‘service’ for the charging of electric vehicles. This will attract investments into the charging infrastructure. The government has proposed the exemption of registration fees for battery-operated/electric vehicles to promote the use of eco-friendly vehicles in the country. The Ministry of Road Transport and Highways has allowed the age group of 16-18 years to obtain driving licences to drive e-scooters.

All this is being done to promote the use of electric mobility in the country. Many major cities also use battery-powered buses for public transportation. Thus, it is quite clear that the government is trying to push for green mobility as much as possible.

The transportation sector accounts for 18% of the total energy consumption of the country. The use of electric vehicles is going to decrease this figure slowly and steadily. Companies like Tesla will serve as external aid in bringing down fuel consumption and subsequently, pollution in India as well.

 

[Crissa]

Oh, their evidence of Tesla looking for employees to move to Texas is from a friend of a friend tweet,

Clicking through paid off again ^-^

-Crissa

 

[firsttruck]

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Another reason Tesla might be looking at the Karnataka district of India is that lithium deposts were recently discovered there.

The deposit is small but there might be much more in the country. Nobody really explored for lithium in India in the past.


-----------------------------


Lithium reserve found in Mandya near Bengaluru
Researchers at the Atomic Minerals Directorate, a unit of India's Atomic Energy Commission, have estimated lithium reserves of 14,100 tonnes in a small patch of land surveyed in the Southern Karnataka district.
Raghu KrishnanET Bureau
February 18, 2020
https://auto.economictimes.indiatim...serve-found-in-mandya-near-bengaluru/74183545

....
Researchers at the Atomic Minerals Directorate, a unit of India's Atomic Energy Commission, have estimated lithium reserves of 14,100 tonnes in a small patch of land surveyed in the Southern Karnataka district, according to a paper to be published in the forthcoming issue of journal Current Science.

"The present data provides a total estimation of available Li2O as about 30,300 tonnes over an area of 0.5 km x 5 km, which works out to about 14,100 tonnes of lithium metal," said N Munichandraiah, Emeritus Professor at the Indian Institute of Science and an expert on battery technologies.


.....
‘Not Enough Exploration Effort’

Its imports of lithium batteries tripled to $1.2 billion in FY19 from $384 million in FY17. In the eight months to November 2019, lithium battery imports stood at $929 million, according to data shared by science & technology minister Harsh Vardhan in Parliament on February 2.

Experts say while India requires lithium for its energy needs, there has been no comprehensive effort to map local reserves of lithium so far.

“We have not explored so far whether we have adequate reserves of lithium because of concerns of radioactivity,” says Dr Rahul Walawalkar, president of India Energy Storage Alliance, a grouping that looks at battery technologies. “We don’t know the potential”.



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[cyberville]

-----------------------------

Another reason Tesla might be looking at the Karnataka district of India is that lithium deposts were recently discovered there.

The deposit is small but there might be much more in the country. Nobody really explored for lithium in India in the past.


-----------------------------


Lithium reserve found in Mandya near Bengaluru
Researchers at the Atomic Minerals Directorate, a unit of India's Atomic Energy Commission, have estimated lithium reserves of 14,100 tonnes in a small patch of land surveyed in the Southern Karnataka district.
Raghu KrishnanET Bureau
February 18, 2020
https://auto.economictimes.indiatim...serve-found-in-mandya-near-bengaluru/74183545

....
Researchers at the Atomic Minerals Directorate, a unit of India's Atomic Energy Commission, have estimated lithium reserves of 14,100 tonnes in a small patch of land surveyed in the Southern Karnataka district, according to a paper to be published in the forthcoming issue of journal Current Science.

"The present data provides a total estimation of available Li2O as about 30,300 tonnes over an area of 0.5 km x 5 km, which works out to about 14,100 tonnes of lithium metal," said N Munichandraiah, Emeritus Professor at the Indian Institute of Science and an expert on battery technologies.


.....
‘Not Enough Exploration Effort’

Its imports of lithium batteries tripled to $1.2 billion in FY19 from $384 million in FY17. In the eight months to November 2019, lithium battery imports stood at $929 million, according to data shared by science & technology minister Harsh Vardhan in Parliament on February 2.

Experts say while India requires lithium for its energy needs, there has been no comprehensive effort to map local reserves of lithium so far.

“We have not explored so far whether we have adequate reserves of lithium because of concerns of radioactivity,” says Dr Rahul Walawalkar, president of India Energy Storage Alliance, a grouping that looks at battery technologies. “We don’t know the potential”.



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The thought of that is pretty rad: get from ground, put in car...zoom, zoom