Tesla Steps into India with First Office Lease in Pune
Tesla takes a giant leap into India with a 5-year office lease in Pune, aiming to establish a manufacturing base for low-cost EVs, targeting the world's third-largest auto market
Tesla, the electric vehicle giant led by Elon Musk, has made its first significant move into the Indian market by leasing office space in Pune. This step highlights Tesla's commitment to India, and it's part of a larger strategic plan to expand their presence in the country.
The office space, located in Panchshil Business Park in Viman Nagar, spans 5,580 square feet and has been leased for five years. With a monthly rent of ₹11.65 lakh, the lease starts from October 1, 2023, and there's an option to extend it for another five years.
Despite this move, the Indian government clarified that there are no special policies for. Instead, the electric carmaker can avail support from existing schemes like the Production-Linked Incentive (PLI) for auto and advanced chemistry cells.
Last month, Tesla officials met with various Indian government representatives, including Commerce and Industry Minister Piyush Goyal, to discuss their plans to establish a manufacturing base in India. The discussions revealed Tesla's aim to produce electric vehicles 25% cheaper than its lowest-priced offering, the Model 3 sedan.
India, the world's third-largest auto market, is a significant opportunity for Tesla. Electric vehicles currently constitute less than 2% of India's total vehicle sales, indicating substantial potential for growth. Tesla intends to tap into this by introducing a low-cost EV priced around $24,000(19,85,732.40 rupees).
In conclusion, Tesla's leasing of office space in Pune is a clear signal of its ambitious plans for the Indian market. While hurdles like import taxes and regulatory navigation remain, Tesla's commitment shows a promising path towards sustainable transportation in India.