Tesla signs 5-year lease deal to open first showroom in Mumbai; rent is $446,000

Tesla, the US-based electric vehicle (EV) giant, has taken a major step towards entering the Indian market by securing a lease for its first showroom in Mumbai. According to a report, Tesla has signed a 5-year lease agreement, marking a renewed effort to establish a presence in India after previous plans were put on hold.

Lease Agreement Details

The registered lease documents reveal that Tesla will begin operations at its Mumbai showroom on February 16, 2025. The showroom will be 4,003 square feet (372 square metres) in size—equivalent to the dimensions of a basketball court.

The initial rent for the first year is set at $446,000. The agreement includes a structured rent increase of 5% annually, culminating in an estimated $542,000 rent for the fifth year. This data has been sourced from a lease document. 

Prime Location in Bandra Kurla Complex

The showroom will be located in the Maker Maxity building, situated in Mumbai’s Bandra Kurla Complex (BKC). This area serves as a key business and retail hub, with its proximity to the city’s airport adding to its strategic advantage.

Expansion Plans: More Showrooms on the Horizon

The Mumbai showroom is just the beginning of Tesla’s expansion in India. Reports indicate that the company is also in the process of finalising locations for new and additional showrooms in New Delhi and Mumbai. This suggests a broader strategy for entering the Indian EV market, where demand for sustainable mobility solutions is growing.

Tesla’s Renewed Push into India

Tesla’s latest move follows a high-profile meeting between its CEO Elon Musk and Indian Prime Minister Narendra Modi in the US. The meeting had sparked widespread speculation regarding Tesla’s entry into India, and the Mumbai showroom deal now appears to be a step towards realising those ambitions.

Previously, Tesla had put its India expansion plans on hold due to policy uncertainties. However, with India’s push for increased EV adoption and incentives for clean energy vehicles, Tesla seems poised to make its long-awaited entry into the Indian market.

Conclusion

While Tesla has yet to officially comment on the Mumbai showroom lease, the deal signals a strong intent to bring its premium electric vehicles to India. The company has been advocating for lower import duties to make its cars more affordable in the country, and a formal presence in Mumbai could be a precursor to further developments in that direction.

With Tesla making strategic moves to establish its footprint in India, the EV landscape in the country is set to become even more dynamic in the coming years.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.