Tesla is in talks with the industries department of the Karnataka government. According to a report by The Economic Times, the goal of the EV maker is to set up a new R&D center in India’s technology capital, Bengaluru.
Bengaluru is a well-known R&D hub for sectors like aviation, biotechnology, and information technology. The city already has over 400 large R&D centers, including General Electric’s first and largest global lab outside the US, Samsung, and IBM, etc.
The arrival of one of the biggest electric car companies in the world, like Tesla, will further boost the state’s image and stature.
About a year ago, Tesla CEO Elon Musk expressed his interest in bringing Tesla electric cars to India. But, Elon blamed the restrictive government policies that delayed Tesla from entering the Indian region.
Despite having a vast potential, the high duty on imported vehicles prevented Tesla from entering the Indian market, the world’s fourth-largest automobile market. However, Musk said that “recent changes in sales tax give hope for future changes.”
Earlier this year, a user named Spaceguy24, asked Elon on Twitter if Tesla would expand in Asia outside China. Elon Musk replied to the user as follows:
If the talks come out to be fruition, India will be the second country after China to have a Tesla research center outside of the US.
Currently, Karnataka is seeking investments and has also set up a task force to pursue companies looking to relocate from China after the pandemic.