The electric vehicle giant finalises a high-value lease, marking its official entry into the Indian market
Tesla, the US-based electric vehicle (EV) manufacturer, is set to open its first showroom in Mumbai’s Bandra Kurla Complex (BKC), taking a significant step toward its long-awaited India launch. The move comes after months of speculation and recent discussions between Tesla CEO Elon Musk and Prime Minister Narendra Modi, reported timesofindia.indiatimes.com.
Tesla to occupy premium space in Mumbai as part of India expansion plans
According to property market sources, Tesla has secured a 4,000 sq ft space on the ground floor of a commercial tower in BKC. The company will use the showroom to display its cutting-edge electric vehicles. The lease, reportedly one of the highest in India, is priced at Rs 900 per sq ft, amounting to approximately Rs 35 lakh per month. The lease term is for five years, with Tesla also planning to open a second showroom in Delhi’s Aerocity in the coming months.
The leasing agreement was finalized shortly after Elon Musk’s meeting with Prime Minister Modi in Washington. Following their discussion, Tesla listed 13 job openings in India, signaling the company’s renewed commitment to entering the Indian market.
Industry insiders believe these developments point to a Tesla launch in India within the next few months, as discussions on the India-US Bilateral Trade Agreement progress
Tariff concerns and policy changes
Tesla’s India entry has been complicated by high import duties. Currently, the Indian government imposes a 110% duty on imported vehicles, a major barrier for Tesla. Former US President Donald Trump previously criticized these tariffs, calling them unfair and suggesting that such policies force Tesla to set up a manufacturing plant in India.
Musk has been lobbying for lower tariffs, which has prompted the Indian government to draft new policies to facilitate the company’s entry.
With the opening of its Mumbai showroom and potential Delhi outlet, Tesla is positioning itself to tap into India’s growing EV market while continuing to negotiate for a favorable tariff structure.
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