According to a government document, Tesla Inc will be setting up an electric-car manufacturing unit in the southern state of Karnataka.

“The U.S. firm Tesla will be opening an electric car manufacturing unit in Karnataka,” said a state government official in a brief statement.

In January 2020, Tesla Motor incorporated Tesla Motors India and Energy Private Limited with its registered office in the city of Bengaluru, in Karnataka – a hub for global technology companies.

Incidentally, Musk has tweeted several times about the company’s plans on increasing its footprint in the country. In December 2020, Musk had confirmed in an exchange on Twitter that the carmaker will launch in the country sometime in 2021.

India is keen to significantly reduce pollution from cars and bring down its dependence on fossil fuels. Its efforts to promote increased adoption of electric vehicles is facing some push back in the form of lack of investment in manufacturing and infrastructure including charging stations.

To mitigate these issues, New Delhi plans to offer $4.6 billion in incentives to companies setting up advanced battery manufacturing facilities.

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