Tesla Wants To Build An R&D Center In Bengaluru

It’s believed that Tesla intends to open an R&D center in India – a market it was struggling to enter.

In 2016, Elon Musk, the automaker's CEO, said the company planned to sell in the Indian market but for many reasons, the plan was delayed.

India-born Jay Vijayan, former Chief Information Officer of Tesla, went to the country to see if it was possible for the company to enter the Indian market. After that, it wasn’t sure if the company could even import its electric cars in India.

Musk expressed his concerns over the local regulations that compel retailers to source 30% of parts from India, which could prevent the launch from happening.

In response to Musk’s concern, the commerce and industry ministry said he was wrong. Back then, they assumed Tesla would think about setting up factories in India in order to sell cars in the country. However, much like any other market except for the US, the automaker wanted to import its cars first.

In 2019, rumor had it that Tesla had its eye on an India-based battery factory. And this year, some reports said the auto-maker was in talks with the Karnataka government to open a research and development center:

Bengaluru is a huge industry center with multiple other auto-makers already have their bases there. The move might be part of its effort to tap into the Indian talent pool.

The Indian market tends to lean toward cheaper and smaller vehicles than those the US auto-maker has on its portfolio but Tesla is recently talking about making more affordable hatchback.

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