Tesla Leases Its First Office Space in India, Signing Lease in Pune

In a significant move towards entering the Indian market, Tesla's Indian subsidiary, Tesla India Motor & Energy Pvt Ltd, has taken a crucial step by leasing an office space in Pune. The office space, located in the Panchshil Business Park in Viman Nagar, spans 5,580 square feet on the first floor of B Wing. The lease agreement was signed with Tablespace Technologies Pvt Ltd for a duration of five years.

Accrding to reports in the Hindustan Times, Tesla India will be paying a monthly rent of ₹11.65 lakh, along with a security deposit of ₹34.95 lakh. The rent is set to commence from October 1, 2023, and the agreement includes a lock-in period of 36 months with a yearly escalation clause of 5 percent.

Moreover, there is an option for Tesla to extend the lease for another five years, which could potentially extend the electric vehicle manufacturer's commitment to the Indian market to a decade.

Regarding government policies and incentives, officials have clarified that no separate policy is being formulated exclusively for Tesla. Instead, the company is encouraged to apply for support measures under existing schemes like the Production-Linked Incentives (PLI) for the auto and advanced chemistry cells industries. The Indian government has already rolled out PLI schemes with significant funding for advanced chemistry cell (ACC) battery storage and the auto, auto-components, and drone industries.

Earlier, in 2021, Tesla had requested a reduction in import duties on electric vehicles (EVs) in India. While specific details regarding the outcome of this request have not been disclosed, the government's stance seems to prioritize treating all companies equally and offering incentives through existing schemes.

In preparation for its entry into the Indian market, Tesla's representatives visited the country last month and held meetings with officials from various ministries, including the Commerce and Industry Ministry.

As Tesla establishes its presence in India, it is expected to play a pivotal role in the country's push towards electric mobility and sustainability. The office space lease signifies a tangible step forward for the company's operations and signifies its long-term commitment to the Indian market. With its renowned electric vehicles and innovative technologies, Tesla's entry is anticipated to be a significant development for the Indian automotive industry and the broader clean energy movement in the country.