Tesla has taken another step forward in its plans to set up a manufacturing facility in India. Tesla India Motor & Energy Pvt Ltd, the automaker’s arm in India, has leased office space in Pune.
Tesla has entered into a five-year lease agreement with Tablespace Technologies Pvt Ltd, securing 5,850 sq.ft of office space on the first floor of B wing in Panchshil Business Park, according to The Economic Times. The automaker will pay a monthly rent of Rs 11.65 lakh (~C$18,800) and a security deposit of Rs 34.95 lakh (~C$56,000), with the lease starting on October 1, 2023.
Pune, known as one of Asia’s largest industrial hubs, offers a favorable environment for Tesla’s expansion plans. The region houses over 4,000 manufacturing enterprises, including prominent players in the electronics, engineering, automobile, and e-vehicle sectors. The automobile supply chain in Pune is well established, with major Indian vehicle manufacturers and ancillary companies having invested heavily in state-of-the-art production facilities.
The move comes after Tesla’s CEO, Elon Musk, met with Prime Minister Narendra Modi in June, expressing the company’s interest in establishing a manufacturing base in India. Previously, Tesla had cited high import duties as a barrier to setting up a manufacturing plant in the country. The company had requested a 40% import duty on fully assembled electric cars, but the Indian government was not going to provide concessions unless there were substantial local investments.
However, the recent developments indicate Tesla has had a change in stance, with the company now actively pursuing opportunities in the Indian market, and Musk promising a significant investment “as soon as humanly possible.”