Tesla, America's leading electric car manufacturer, has made significant strides toward establishing its presence in India. The company is set to open its first showroom in Mumbai, having signed a lease agreement in the Bandra-Kurla Complex (BKC). Tesla, owned by the world’s richest man, Elon Musk, has committed to a five-year lease starting from February 16, 2025, with an initial rental fee of USD 446,000 for the first year.
The showroom will span an impressive 4,003 square feet, which is roughly equivalent to the size of a basketball court. Under the terms of the lease, the rent will increase by 5 percent each year, culminating in a final annual rent of USD 542,000 by the fifth year. Located within the Maker Maxity Building in BKC, this venue is strategically situated close to Mumbai Airport, surrounded by offices and retail spaces of numerous renowned global brands.
Initially, Tesla will focus on selling imported cars in India, with vehicles shipped from Berlin, Germany. Following the launch in Mumbai, the company has plans for a second showroom in the nation’s capital, Delhi. Reports suggest that this next location may be in Aerocity, conveniently near Indira Gandhi International Airport.
Musk's meeting with Prime Minister Narendra Modi during his recent visit to the United States appears to have been a pivotal moment that sparked the initial groundwork for Tesla’s Indian venture.
Meanwhile, the Indian government is set to introduce a new Electric Vehicle (EV) policy that aims to reduce import taxes and attract global automakers, including Tesla. This initiative may transform India’s EV market by potentially making premium electric vehicles more accessible to consumers.
According to the proposed policy, the import duty on premium EVs, which are priced above USD 35,000, will be lowered from the current rate of 110 percent to 15 percent. This significant reduction in taxes is intended to encourage international EV manufacturers to invest in India’s expanding EV sector.