In what is likely the highest leasing rent for a commercial space, US-based EV giant Tesla has finalised an agreement to open its first showroom in Mumbai's Bandra Kurla Complex, bringing it one step closer to its eagerly anticipated India launch.
For years, Elon Musk-led Tesla has had its sights set on the Indian market. The business originally had plans to enter India in 2022, but those were shelved. It started working on establishing a retail presence again last year, and now the launch seems to be imminent.
India’s First Tesla Showroom in BKC
According to people familiar with the matter, the EV giant Tesla plans to open its first showrooms as early as possible. The business has obtained a prominent retail location in Mumbai's Bandra Kurla Complex. But according to a source who spoke to NDTV, these places will only be retail establishments and not service centres.
According to real estate market sources, Tesla will showcase its vehicle models in a 4,000 sq. ft. space on the ground floor of a commercial tower in BKC. The monthly lease rent is approximately Rs 35 lakh, or Rs 900 per square foot, with a 5-year lease agreement. Tesla is also planning to open a second showroom in Delhi's Aerocity complex.
Elon Musk's ambition to enter the expanding Indian market is moving forward on schedule, with the lease being signed just weeks after he met with Prime Minister Narendra Modi in Washington and posted 13 job listings in Mumbai, Maharashtra.
The twin actions taken in February suggest that Tesla may be preparing for a launch in the coming months when the India-US Bilateral Trade Agreement, which was announced after PM Modi's meeting with US President Trump, becomes clearer.
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Tesla Car Prices in India
According to a report by global capital market firm CLSA, Tesla's cheapest model will cost between Rs 35 and Rs 40 lakh as the automaker prepares for its eagerly anticipated arrival in India. Even if import duties are expected to decrease to 15% to 20%, extra expenses like insurance and road tax will keep the on-road price high.
Once imported to India, the price of Tesla's Model 3, which currently retails for about USD 35,000 (Rs 30.4 lakh) in the US, would rise. According to the analysis, the Model 3 is unlikely to cause a market disruption if its pricing is 20–50% more than that of domestic electric vehicles such as the Mahindra XEV 9e, Hyundai e-Creta, and Maruti Suzuki e-Vitara.
According to the article, to reduce costs and broaden its customer base, Tesla would have to set up a production plant in India. If Tesla invests more than Rs 4,150 crore in domestic manufacturing, it may be eligible for 15% lower import taxes under India's EV policy on up to 8,000 units per year.
Other Tesla car models’ expected prices in India:
(Prices are approximate and subject to change.)
With these developments, it seems that Tesla will soon set up shop in India, and its initial showrooms in Mumbai and Delhi are only the beginning of the EV giant's journey in the country.
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