Significant advancements have been seen in recent developments regarding Tesla‘s entry into the Indian market on a number of fronts. First off, by acquiring office space in Pune’s prominent Panchshil Business Park, Tesla’s Indian affiliate, Tesla India Motor & Energy Pvt Ltd, has made a notable advancement. This tactical move follows negotiations between senior Tesla executives and representatives of Invest India about the creation of an electric vehicle (EV) manufacturing facility in India.
Data from real estate analytics company CRE Matrix indicates that the 5,850 square foot leased office space is situated on the first floor of the B wing of Panchshil Business Park. This five-year lease was arranged in cooperation with Tablespace Technologies Pvt Ltd, and it includes a security deposit of INR 34.95 lakh and a monthly fee of INR 11.65 lakh. According to the contract, Tesla is also entitled to ten bike parks and five parking spaces.
Notably, the lease contains a 5 percent yearly escalation provision and a lock-in duration of 36 months. The first rental payment is expected to be made on October 1, 2023. The Panchshil Business Park, which is still under construction, has a staggering 10,77,181 square feet of development space. It is strategically located near important transit hubs in Viman Nagar, barely 500 metres from Nagar Road and three kilometres from Pune International Airport, for example.
In a similar vein, India’s Minister of Commerce, Piyush Goyal, recently convened a private meeting with American-born senior Tesla executives. This private meeting clarified Tesla’s ambitions to build a manufacturing base in India with the objective of developing an affordable EV priced at US$ 24,000. This potential product, which boasts a price point about 25% lower than Tesla’s current entry model, intends to break into both the Indian and worldwide markets.
The meeting included not only Commerce Minister Goyal, but also officials from the Invest India agency, who discussed Tesla’s thorough approach. This follows Elon Musk’s earlier meeting with Indian Prime Minister Narendra Modi, during which he expressed a strong desire to make significant investments in the Indian economy.
In the wake of these two major developments, Tesla’s market-positioning actions in India have taken on a multifaceted course that includes the development of strategic infrastructure and high-level diplomatic contacts, all in line with the company’s passion for breaking new ground in the field of electric mobility.