Elon Musk's Tesla To Set Up Mercedes-Like R&D unit In India? Exclusive

Tesla Inc., which is strategizing its entry into India's electric vehicle (EV) market, is reportedly planning to establish a global Research & Development (R&D) centre in Bangalore, as per sources cited by Republic Business. Sources have also revealed that the facility is expected to be take a cue from Mercedes-Benz’s R&D operations in India

“Tesla is actively seeking engineers across various domains for its global product lines and solutions. As part of this initiative, the company aims to set up an R&D centre focusing on innovations in EV technology, battery enhancements, and autonomous driving systems,” an anonymous source revealed.

However, details regarding the scale of the R&D centre and the workforce size remain unclear. Tesla is yet to respond to queries regarding the development.

Currently, the Elon Musk-led EV giant operates an R&D centre in New York, a design hub in Berlin, and an Innovation Centre in Shanghai.

Another source disclosed that the Bangalore unit will closely collaborate with Tesla’s other global facilities. Its functions will extend beyond localization and application engineering to include automation, testing, validation, and software development.

Industry experts believe Bangalore was chosen due to its strong tech infrastructure, skilled workforce, and thriving EV startup ecosystem. The new facility is expected to generate high-skilled jobs and foster collaborations with Indian startups and research institutions.

“Automotive firms establish technical and software hubs in India to leverage the country’s vast talent pool. With cars becoming more tech-driven, India’s IT engineers can contribute to advancements in AI, data centers, and emerging technologies,” said Puneet Gupta, Director at S&P Global Mobility, India & ASEAN.