Tesla secures its first showroom space in Mumbai, marking a key step in its plans
Tesla has taken its first significant step toward entering the Indian market, securing a lease for its debut showroom in Mumbai. The U.S.-based electric vehicle manufacturer has signed a five-year lease agreement for a retail space in the Bandra Kurla Complex (BKC), one of Mumbai’s prominent business and retail districts, according to property registration documents.
The showroom, spanning approximately 4000 square feet, is located in the Maker Maxity building, which is in close proximity to the city’s airport. Tesla’s lease begins in February 2025, with the first year’s rent estimated at around $446,000. The agreement includes an annual 5% rent escalation, with the total lease value exceeding $2.5 million over the five-year term, according to data from property analytics firm CRE Matrix.
This development follows Tesla’s earlier attempts to enter India, which were shelved after challenges around import duties and policy hurdles. Now, the company is resuming its push into the market with plans to sell imported vehicles through its upcoming showrooms.
Tesla’s India presence is set to expand beyond Mumbai. The company is also reportedly finalizing plans for a showroom in New Delhi, part of a broader strategy to establish a foothold in key metropolitan areas. The automaker has also posted several job openings in India, seeking professionals for store management, customer relations, and service roles, signaling the early stages of building its local team.
The Mumbai showroom’s location places it near the Jio World Drive mall, which houses an Apple store and is operated by Reliance Industries, led by billionaire Mukesh Ambani. This positioning within a high-profile retail hub reflects Tesla’s strategy of targeting affluent urban customers — a key demographic for its premium electric vehicles.
Tesla’s approach to entering India has been shaped in part by the country’s steep import taxes on foreign vehicles, which can exceed 100%. CEO Elon Musk has frequently criticised these tariffs, calling them among the highest globally, and has advocated for more favourable terms for EV imports.
Trade discussions between the United States and India are ongoing, with Washington pressing for reduced tariffs on imported vehicles as part of a potential trade pact. However, India has shown reluctance to eliminate these duties entirely, though some gradual reductions are reportedly under consideration.
Tesla has yet to comment on its specific plans for India or provide further details on the timeline for the showroom’s opening.
