Tesla signs lease agreement to open its first Indian showroom in Mumbai's BKC: Report

World's richest man Elon Musk-led electric cars maker Tesla has reportedly signed a lease agreement for a 4,003-square-foot showroom in Mumbai’s Bandra Kurla Complex (BKC), marking its first brick-and-mortar footprint in India. 

According to an ET report, the EV giant will pay Rs 3.87 crore in the first year—about Rs 881 per square foot each month—setting a new national benchmark in leasing rates. The previous record for commercial space rentals stood at Rs 738 per square foot, set by Apple in January.

Tesla showroom location

The ground-floor outlet at 2 North Avenue in the Maker Maxity building will serve as Tesla’s flagship store, showcasing its electric cars and branding them as premium EV options for Indian buyers.

The lease agreement, which was registered last week, has a five-year term commencing February 16, with a “rent-free period” running through March 31.

Tesla India Motors & Energy, the EV giant’s local entity, has reportedly paid a security deposit of Rs 2.11 crore at the time of registration. Under the deal, rent will escalate by 5% annually, reaching Rs 4.7 crore by the end of year five. 

The property’s owner, Univco Properties LLP, has agreed not to terminate the lease during the entire tenure, and Tesla is bound by a 36-month initial lock-in period.

Tesla's continued focus on the Indian market

The development comes amid renewed signs that Tesla is focusing on an Indian launch. Earlier this week, Reuters reported that U.S. officials have been pushing India to eliminate or substantially lower tariffs on car imports as part of a broader trade discussion.

At present, India imposes duties exceeding 100% on imported EVs, complicating Tesla’s entry plans. The report mentioned that the Indian side remains hesitant about fully dismantling auto import duties, though it has not dismissed the possibility of partial reductions.