Tesla Leases Office Space In Pune Amid Talks Of India Entry

Elon Musk-led Tesla, which is in talks with the Indian government to set up a manufacturing plant in the country, has reportedly leased office space in Pune in Maharashtra.

Citing documents shared by real estate analysis platform CRE Matrix, Hindustan Times reported that Tesla has leased an office, spread over 5,850 sq ft. area, in the first floor of Panchsil Business Park in Viman Nagar of Pune.

The electric car manufacturer has signed a five-year lease agreement with Tablespace Technologies Pvt Ltd, with a monthly rent of INR 11.65 Lakh and a security deposit of INR 34.95 Lakh. The agreement also includes provisions for five car parks and 10 bike parks.

The development comes at a time when Tesla executives have been meeting various government officials in India about the company’s plan to set up a manufacturing facility in the country.

Tesla is reportedly looking to manufacture cars priced at $24,000 (about INR 20 Lakh) from its proposed India plant. Besides the domestic market, the cars manufactured at the plant will also be exported.

While Musk had earlier criticised the high import duties on cars in India and put Tesla’s India plans on hold, the company seems to have changed its plans now. Rising geopolitical tensions between Washington and Beijing seem to have forced the company to reduce reliance on China. Besides, the Indian government’s production-linked incentive (PLI) schemes to promote domestic manufacturing also seems to have attracted the company.

Earlier this year, Musk met Prime Minister Narendra Modi during his state visit to the US and said Tesla would launch in India as soon as possible.

Tesla reportedly also wants to bring some of its Chinese vendors to India but has been asked by Indian officials to copy Apple’s playbook in the country and ask its Chinese suppliers to set up joint ventures with Indian partners to get the clearances.