Quick Highlights:
- Karnataka to develop three clean mobility clusters, including a 700-acre EV hub at Harohalli near Bengaluru.
- Plug-and-play infrastructure will help smaller EV manufacturers and testing facilities set up operations faster.
- The initiative is part of the Clean Mobility Policy 2025-30, targeting ₹500 billion in investments by 2030.
- Incentives include tax exemptions, stamp duty concessions, and urban parking provisions for electric vehicles.
Karnataka Moves Ahead With EV Manufacturing Hubs
Karnataka is advancing plans to establish dedicated electric vehicle manufacturing clusters near Bengaluru as part of its Clean Mobility Policy 2025-2030. The initiative aims to strengthen the state’s position in India’s rapidly expanding electric mobility sector.
From my perspective, the focus on building specialized infrastructure rather than only offering subsidies is a practical approach. Manufacturing ecosystems thrive when suppliers, testing facilities, and assembly units operate close to one another, and these clusters appear designed with that principle in mind.
Three Clean Mobility Clusters Identified
The state government has identified three strategic locations for clean mobility clusters:
- Harohalli, Ramanagara district — 700 acres, about 40 km from Bengaluru (primary site)
- Chikkamalligewada, Dharwad district — 1,000 acres, around 30 km from Hubballi airport
- Gauribidanur, Chikkaballapur district — 825 acres, roughly 70 km from Bengaluru
The Harohalli cluster is expected to receive priority development, particularly Phase 5 of the industrial area, which will be prepared to host EV-related industries.
Plug-and-Play Infrastructure to Support Startups and MSMEs
The Karnataka Industrial Areas Development Board (KIADB) will oversee the development of plug-and-play facilities across these clusters. These ready-to-use industrial spaces are intended for:
- Battery pack assembly operations
- Electric vehicle component manufacturing
- Vehicle assembly units
- Testing laboratories
- Charging infrastructure development
In my view, this focus on smaller manufacturers and testing firms could be especially impactful. Many early-stage EV companies struggle with capital expenditure on land and buildings, and reducing those barriers can accelerate innovation.
Investment Targets Under Clean Mobility Policy 2025-30
The clusters are part of Karnataka’s broader strategy under the Clean Mobility Policy 2025-30, which aims to attract ₹500 billion (about $5.7 billion) in investments across the clean mobility value chain by 2030.
The policy also envisions positioning Karnataka as a leading clean mobility hub in Asia, with emphasis on both electric vehicles and hydrogen fuel cell technologies.
Incentives to Accelerate EV Adoption and Manufacturing
The policy, effective February 11, 2025, includes several incentives:
- Exemptions from road tax and registration charges for most EV categories
- Stamp duty concessions
- Mandated parking reservations for clean-fuel vehicles in urban areas
These measures are designed to stimulate both manufacturing and consumer adoption, which is essential for a balanced EV ecosystem.
Why This Development Matters
India’s EV market is growing quickly, but manufacturing capacity and supply chains still need strengthening. By investing in cluster-based development, Karnataka is addressing infrastructure gaps while attracting new players.
Personally, I see this as part of a broader trend: states are beginning to compete not just on incentives but on ecosystem readiness, which could shape where future EV giants choose to set up operations.
Frequently Asked Questions — FAQs
Q. Where is Karnataka’s proposed EV manufacturing hub near Bengaluru?
- The primary hub is planned at Harohalli in Ramanagara district, about 40 kilometers from Bengaluru, covering 700 acres.
Q. How many clean mobility clusters are being developed?
- The government has identified three clusters: Harohalli, Chikkamalligewada (Dharwad), and Gauribidanur (Chikkaballapur).
Q. What is the goal of the Clean Mobility Policy 2025-30?
- The policy aims to attract ₹500 billion in investments by 2030 and establish Karnataka as a major clean mobility hub.
Q. What kind of infrastructure will be available in these clusters?
- Facilities will include plug-and-play industrial spaces, battery assembly units, component manufacturing, and testing laboratories.
Q. What incentives does the policy offer?
- Key incentives include road tax exemptions, registration fee waivers, stamp duty concessions, and reserved parking provisions for EVs.
