In what comes as a recent development, Tesla Inc. has agreed on agreements to initiate operations and manufacture electronic automobiles in Bengaluru, India.

This comes as a follow-up after founder Elon Musk set up production units in US and China.

Tesla is going to set up its first plant in Bengaluru, Karnataka's capital city, the state's chief minister said over the weekend.

According to reports, the techno-giant firm has been negotiating with local officials for about six months and is actively considering car assembly in the suburbs of Bangalore.

The firm is conducting due diligence for office real estate in the region and is planning to set up an R&D facility, said the people who have wished to withhold their identities as the matter is private. Tesla has focused on Bangalore because of the city being an IT hub for electric vehicles and aerospace manufacturing potential, they said. Tesla has incorporated its Indian unit and registered offices in downtown Bangalore.

Elon Musk being the world's richest man on January 13 tweeted "as promised" in response to a report on a Tesla-centric blog that the automaker was in talks with several Indian states to open an office, showrooms, a research and development center and possibly a factory.

From the Indian end, youth like Nikhil Chaudhary, a 20-year-old student is a prime example at the University of Delhi who helped start India's Tesla fan club in 2019.

Electric vehicles (EVs) account for about 5% of China's annual car sales, according to Bloomberg NEF, compared to less than 1% in India.

According to the International Energy Agency, around 60% of the world's public slow-and fast-charging spots are in China. As Chinese carmakers roll out competitive EV models and develop a diverse ecosystem, the country is "heading toward disrupting the current global auto industry landscape," UBS Group AG analysts wrote in a report last month.