Tesla, the world’s leading electric vehicle (EV) maker, has officially secured its first showroom in India. The company, led by Elon Musk, has signed a lease agreement for a 4,003-square-foot space in Mumbai’s Bandra Kurla Complex (BKC), marking its physical entry into the Indian market.
According to reports, Tesla’s new showroom will be located at 2 North Avenue in the Maker Maxity building and will serve as a flagship store, showcasing its premium electric cars to Indian consumers.
Tesla Sets New Record in Commercial Leasing
Tesla’s lease agreement, which was registered last week, is significant not only for its market entry but also for setting a new record in commercial leasing rates. The company will pay Rs 3.87 crore in the first year, which translates to Rs 881 per square foot per month. This surpasses the previous Rs 738 per square foot record set by Apple in January.
Key details of Tesla’s lease agreement include:
- Duration: 5-year lease starting February 16, 2025
- Security Deposit: Rs 2.11 crore
- Annual Rent Increase: 5%
- Rent-Free Period: Until March 31, 2025
- Lock-in Period: 36 months
The agreement also ensures that Univco Properties LLP, the property owner, cannot terminate the lease within the entire five-year term.
Tesla: Strategic Move in India
Tesla’s decision to establish a showroom in Mumbai’s premium business hub, BKC, reflects its commitment to expanding into the Indian EV market. This move aligns with Tesla’s long-term goal of strengthening its presence in key global markets.
The Indian EV market has witnessed significant growth, but Tesla’s entry has been complicated by India’s high import duties. Currently, the Indian government imposes over 100% import taxes on foreign EVs, making it difficult for Tesla to price its cars competitively.
Policy Talks and Future Expansion
As Tesla makes its first brick-and-mortar move in India, discussions between Indian and U.S. officials about reducing EV import duties have gained momentum. Reports suggest that while India remains hesitant about fully eliminating auto import taxes, it is open to exploring partial reductions.
Tesla’s Mumbai showroom is expected to be the first of many in India, signaling a stronger push towards EV adoption in the country. With rising interest in sustainable mobility and potential policy shifts, Tesla could soon expand its operations beyond Mumbai, making India a key market for its electric vehicle ecosystem.
