Tesla has recently secured office space in Pune’s Viman Nagar, as the company’s top executives continue to meet with Indian government officials to discuss the possibility of entering the Indian market.
According to documents accessed through CRE Matrix, Tesla India Motor & Energy has leased an office spread over 5,850 square feet in a coworking center located in Panchshil Business Park. The lease is set for a total term of five years, starting from October 1, with an option to renew for an additional five-year period, taking the total commitment to 10 years, reports the Economic Times.
The initial monthly rentals are Rs 11.65 lakh (about $14,000 USD), which will increase by 5% after every 12 months. The total rental payout will be Rs 7.72 crore ($933,300 USD) through the entire lease tenure.
People familiar with the matter have stated that Tesla is eager to establish an electric vehicle manufacturing factory in India and has been actively discussing this with the government. The company had registered its Indian arm in Bengaluru in January 2021, signaling its intentions to launch vehicles in the country.
In June, after a meeting with Indian Prime Minister Narendra Modi in New York, Tesla’s CEO Elon Musk announced that the company might soon set up a manufacturing base in India. This marks a significant shift from the previous year, when Tesla had cited high Indian levies on automobiles as a deterrent, stating that it could only consider a local factory if it succeeded with imported models.
Furthermore, reports suggest that Tesla has been seeking a reduction in the 40% import duty on fully assembled electric cars. However, the Indian government appears unlikely to grant any import duty concessions without a commitment to local investment.
An ET report on Wednesday indicated that India might allow Tesla’s foreign vendors, notably those based in China, to manufacture critical components in the country. This would be significant, as some key electric vehicle components, such as battery cells, are imported from China. Tesla has also expressed interest in bringing its own supply chain ecosystem to India.
Pune, known as one of Asia’s largest industrial hubs, hosts more than 4,000 manufacturing enterprises, including automobile and e-vehicle companies. The well-established automobile supply chain in the region might be a strategic factor in Tesla’s decision to choose Pune for its office space.
Tesla’s ongoing interest in investing in India comes after CEO Elon Musk’s meeting with Indian Prime Minister Modi during his high-profile visit to the US in June. Musk declared his admiration for the PM and highlighted Modi’s encouragement for him to invest in India.
