Elon Musk's Tesla will set up an electric-car manufacturing unit in Karnataka, the southern Indian state's government said in a brief statement.
According to the India Today news organization, Karnataka Chief Minister BS Yediyurappa on Saturday officially confirmed the decision. The announcement was part of the list of benefits promised to Karnataka in the Union Budget.
"American firm Tesla will open a electric-car manufacturing unit in Karnataka," the statement by Yediyurappa said.
Last month, the electric carmaker incorporated Tesla Motors India and Energy Private Limited with its registered office in the city of Bengaluru.
Musk, the world's richest man, has tweeted several times about his desire to enter the Indian market. In December 2020, he confirmed that his company Tesla will launch in the country this year.
India has been keen to reduce its oil dependence and cut down on pollution, but its efforts to promote electric vehicles have been hampered by a lack of investment in manufacturing and infrastructure such as charging stations.
Indian authorities plan to offer $4.6 billion (€3.80 billion) in incentives to companies setting up advanced battery manufacturing facilities.
shs/sms (Reuters, local media)