Tesla to open first Indian showroom in Mumbai—Everything we know
What's the story
Tesla, the famous electric vehicle (EV) maker headed by Elon Musk, has signed a deal to open its first-ever showroom in India. The showroom will be set up at Mumbai's posh Bandra Kurla Complex (BKC), The Times of India reported. Spread over 4,000 square feet on the ground floor of a commercial tower in BKC, the project will have one of the highest commercial rents in the area.
Lease details
Mumbai showroom: A 5-year lease agreement
Tesla has inked a five-year lease for the BKC showroom, with monthly rent pegged at around ₹35 lakh. The development comes just two weeks after Musk met Prime Minister Narendra Modi during his US visit. Following the meeting, Tesla had advertised job openings for 13 positions in India, hinting at the company's expansion plans in the country.
Expansion strategy
Expansion plans include a showroom in Delhi
Along with the Mumbai showroom, Tesla is also looking to open another one in Delhi's Aerocity. The area is a high-end zone located next to India's largest airport, the Indira Gandhi International Airport. The move highlights Tesla's strategic plan to expand its presence in key urban centers across the nation.
Import plans
Tesla contemplates importing cars from Berlin
Reportedly, Tesla is also considering importing vehicles from its Berlin factory to serve the Indian market. The company's plans include launching an EV under $25,000 (approximately ₹18.3 lakh). Tesla's cheapest model in the US is currently the Model 3, which starts at $35,000 (approximately ₹30.4 lakh) at the factory level.
Market impact
Sourcing and potential impact on Indian EV market
While Musk hasn't committed to establishing manufacturing in India yet, Tesla is already sourcing components worth over a billion dollars from the country. This number is likely to increase significantly in the coming months. After Modi's visit, India had also slashed import duties on premium EVs (costing above $35,000) from 110% to just 15%. According to CLSA, Tesla Model 3's on-road price in India would be around ₹35-40 lakh.