MUMBAI: Moving a step closer to its much-anticipated India launch, US electric vehicle maker Tesla has finalised a deal to open its first showroom in Mumbai’s Bandra Kurla Complex, in what is probably the highest lease rent for a commercial space.
Property market sources said Tesla will occupy a 4,000 sq ft space on the ground floor of a commercial tower in BKC, where it will showcase its car models. The monthly lease rent is close to Rs 900 a sq ft, or around Rs 35 lakh a month. The lease agreement is for five years with Tesla expected to open a second showroom in Delhi’s Aerocity complex. The lease was finalised just weeks after CEO Elon Musk met Prime Minister Narendra Modi in Washington, which was followed by a listing for 13 jobs in India, signalling a revival of the company’s plan to enter the growing Indian market.
The twin moves in February indicate that Tesla could be readying for a launch over the next few months by which time there will be greater clarity on the India-US Bilateral Trade Agreement, which was announced after Modi’s meeting with US President Trump.
While govt levies 110% duty on imported vehicles and Trump has flagged it as a concern, arguing that high tariffs are forcing Tesla to set up a plant in India. In a recent interview, Trump had said that if Tesla built a factory in India to avoid the country’s high tariffs, it would be “unfair” to the US. “Every country in the world takes advantage of us, and they do it with tariffs… It is impossible to sell a car, practically, in, as an example, India,” he had said. Musk too has been pitching for lower tariffs and based on his feedback the govt even drafted a new policy.
