Curtains rise today on Tesla's India foray; Model Y tipped as flagbearer

Real estate analysts watching Tesla's impact on rentals closely

Global electric vehicle giant Tesla is set to make its long-awaited India debut on Tuesday, with the launch of its flagship Model Y SUV expected to headline the occasion. The American automaker has locked in Mumbai’s upscale Bandra Kurla Complex (BKC) as the location for its first showroom in the country, marking a significant milestone in its entry into India’s burgeoning EV landscape.

 

Less than 24 hours before the unveiling, final preparations were underway at Tesla’s 4,000 sq ft space in Maker Maxity — an exclusive commercial enclave in BKC that houses sovereign wealth funds and global investment banks. Just a stone’s throw away is Apple’s flagship store at Jio World Drive Mall.

 

Shrouded in secrecy, the Tesla storefront remained fully covered in white curtains and black cloth. The iconic logos and what appeared to be the Model Y vehicles stayed concealed from view. Through gaps in the glass, however, glimpses of a black and a white car — presumably the new variants — could be seen. Known for its sleek, sport-coupé-like form, the Model Y is expected to bring Tesla’s signature minimalist design to Indian roads.

 

At 10 am on Tuesday, the veils will lift, officially unveiling Tesla’s first physical presence in India. Though anticipation is high, company sources confirmed that Elon Musk, Tesla’s co-founder and CEO, will not be attending the event. The unveiling will instead be led by the company’s India team. An email to Tesla’s India unit seeking confirmation on Musk’s attendance went unanswered until press time. 

 

Despite the high-profile nature of the launch, the atmosphere at the site was muted. There was little buzz on the ground, with no gathering of onlookers outside the showroom. Access remained tightly controlled, restricted to those with scheduled appointments.

 

While no private security firm had been brought in, in-house security enforced strict no-photography rules.

 

“Security at Maker Maxity is always tight,” said a person familiar with the complex’s operations. “Nothing can be brought in or taken out easily -- it’s part of the standard protocol.”

 

Tesla appeared to be overseeing every detail of the site’s readiness. The company has not outsourced security or maintenance services. Extensive cleaning, including polishing of the marble flooring, has been carried out both inside and outside the facility.

 

True to its global playbook, Tesla will operate via its company-owned-company-operated (COCO) model, avoiding India’s traditional franchise-led dealership approach.

 

Team members associated with Tesla were seen moving in and out of the showroom throughout the day, even as the event remains deliberately discreet. Press invitations were sent at the last minute.

 

Tesla’s India arrival comes at a time of global headwinds for the EV maker. According to CNN, Tesla delivered 384,122 vehicles globally in the first quarter of 2025, down by nearly 60,000 units from the same period in 2024. Chinese rival BYD has surged ahead, selling over a million vehicles in the first half of 2025, compared to Tesla’s estimated 721,000.

 

India presents a major opportunity for Tesla, with government support for clean mobility and a maturing ecosystem offering fertile ground for premium electric vehicles. Industry insiders believe Tesla’s entry could inject fresh momentum into India’s upper-end EV market. 

 

But is Tesla’s debut sending ripples through BKC’s high-stakes real estate ecosystem? Opinions are split.

 

“There’s not really any impact,” said Gulam Zia, senior executive director at Knight Frank India. “We went through this same speculation when Apple opened up its first store in BKC’s Jio Mall. It didn’t have any effect.”

 

“Office and retail is not like residential, where a celebrity tenant can drive up prices. Tesla’s coming in with a showroom. It’s not a mall. When someone comes to a mall, others benefit -- like Apple at Jio Mall gave the property a a good reputation. But this is a standalone outlet. It won’t impact prices in the area. It won’t impact rentals either,” explained Zia, adding that rent calculations are based on supply and demand, not just because of an occupier.

 

Others disagreed. Anuj Kejriwal, CEO and MD of ANAROCK Retail, said Tesla’s arrival has already stirred the market.

 

“Because Tesla is willing to pay high prices, other major companies are looking into the area, which might raise property values throughout the district,” Kejriwal said. “This anchor tenant effect has a ripple effect, with adjacent businesses getting more customers and the prestige that comes with having Tesla's brand nearby.”

 

“This effect of Tesla on commercial real estate isn’t limited to Mumbai. In the US, malls with Tesla showrooms command at least 12–13 per cent higher per-square-foot prices than malls without them,” he added.

 

BKC is already Mumbai’s most expensive and in-demand retail zone, and Tesla’s move has pushed the ceiling even higher, said Kejriwal. “This is driving demand and modest rent increases in nearby markets that are still more affordable. Neighbouring Kalina-Santacruz and Lower Parel are 30–50 per cent cheaper and have seen a 15–18 per cent rise in demand already,” he elaborated.

 

Arvind Nandan, MD, research & consulting, Savills India, echoed this optimism. “Tesla’s entry in Mumbai will likely set a benchmark for anchor tenants. Nearby office and retail spaces may see rental premia and increased leasing activity as other quality-conscious brands look to co-locate.”