Tesla, the renowned electric vehicle manufacturer, has taken a significant stride in its India entry by leasing office space in Pune.
Tesla India Motor & Energy Pvt Ltd has signed a five-year lease agreement for a 5,850 sq. feet office space at Panchshil Business Park in Pune, with a starting monthly rent of ₹11.65 lakh.
The office setup marks Tesla’s first real presence in India, signalling its intent to establish a strong foothold in the country’s burgeoning electric vehicle market.
The leased space, located on the first floor, will be operated under the building operator Table-space Technologies. The lease comes with a lock-in period of 36 months, and the rent will escalate by 5% annually.
The lease is set to commence on October 1, allowing time for fit-outs to prepare the office for operations.
The effective starting rent translates to ₹199 per sq. feet per month, and there is a provision for the lease to be renewed for another five years.
Tesla’s founder, Elon Musk, recently met with Prime Minister Narendra Modi, affirming the company’s interest in investing in a car-making facility in India. Musk expressed confidence in Tesla’s India venture, stating that they are working on the right timing to enter the Indian market.
The Indian government has shown keen interest in Tesla’s presence and has encouraged the company to emulate Apple’s approach in India by collaborating with local partners who can work with Chinese suppliers.
India aims to avoid wholly-owned Chinese auto components companies setting up bases in the country, and it seeks opportunities for local partnerships.
Tesla’s India arm was registered in Bengaluru early in 2021, but progress towards establishing operations in the country has been gradual. While there were initial reports of the company setting up an office in Mumbai’s Lower Parel area and opening a retail showroom in the city, those plans are yet to materialise.
Elon Musk has been actively lobbying with the Indian government to reduce import duties on electric cars, as Tesla plans to import and sell its vehicles in India. The move is aimed at gauging the market’s response and potential success in the country.
Tesla’s presence in India is eagerly awaited, and with this recent office lease in Pune, the electric vehicle giant takes a significant step towards its India journey.
The Indian market’s growing interest in sustainable and electric mobility makes Tesla’s entry all the more promising, and the nation eagerly anticipates the unfolding of this exciting chapter in the automotive industry.