Tesla set for India debut, rents space in Mumbai's BKC for Rs 35 lakh/month

Elon Musk's Tesla Inc has leased its first showroom in India, located in Mumbai's Bandra Kurla Complex, at a record Rs 881 per sq ft, setting a new national record in terms of lease rentals.

 

The company has signed a lease agreement for Unit G-1B, Ground Floor, 2 North Avenue, Maker Maxity, a high-end office building situated in the vibrant business hub of Bandra Kurla Complex.

 

The deal, finalized on 27th February 2025, sees Tesla India committing to a a security deposit of Rs 2.11 crore and with a monthly rent of Rs 35.26 lakh, with a 5% annual escalation for a sprawling office space covering 4,003 square feet of built-up area. The lease will span over a period of time, with the rental rate set at Rs 881 per square foot.

 

The starting monthly rent amounts to Rs 35, 26,665, showed documents accessed by CRE Matrix, a real estate data analytics firm. 

 

Here are the details of the deal:

• License Period:- 5 years
• License Commencement Date:- 16th Feb 2025
• Rent Free Period:- from 16th Feb 2025 to 31st March 2025
• Rent Escalation:- 5% per annum
• Monthly rent: Rs 35,26,665
• Security deposit paid: Rs 2,11,59,990

 

The lease agreement marks a significant move toward catering to India's increasing demand for premium electric vehicles and includes provisions for a long-term tenure of five years.

 

The move comes amid intensifying discussions surrounding Tesla’s entry into India. On February 13, Musk met Prime Minister Narendra Modi in Washington, DC, fueling speculation about the company’s long-awaited arrival. Since then, Tesla has listed 20 job openings across India—15 in Mumbai and five in Pune—and has been actively exploring showroom locations in Mumbai and Delhi.

 

Tesla has long been interested in entering the Indian market. Although the company initially planned to establish itself in 2022, it delayed its entry due to regulatory hurdles, high import duties, and infrastructure challenges for electric vehicles.