In further signs of Tesla’s accelerated India entry, facilitated by the recent Modi-Trump-Musk meeting, the EV maker is now officially setting up a retail presence in India, likely to showcase and sell its electric vehicles. According to a report by Reuters, citing registration papers, Tesla has signed a lease agreement to open its first showroom in Mumbai (India).
Tesla’s first showroom in India will be located in the Maker Maxity building, which is in Bandra Kurla Complex (BKC) – a major business and retail area in Mumbai, close to the airport. Interestingly, another US tech giant – Apple – also has a presence (retail store) in BKC. As per the report, the EV giant has also chosen specific spots in New Delhi’s Aerocity to establish another showroom.
This comes a few weeks after the much talked about meeting between Indian Prime Minister Narendra Modi and Tesla CEO Elon Musk in the United States. Days after this meeting, a few reports emerged suggesting that the Musk-owned EV maker aims to start selling cars in key Indian cities, such as Mumbai, Delhi, and Bangalore, by the third quarter of 2025. In fact, the company made several new roles live on its careers page for India-related sales, retail, and technology teams.
Clearly, the recent development suggests that Tesla is once again interested in entering the Indian market after previously delaying its plans due to policy and tax issues. By opening a showroom, the company could be testing demand for its cars in India and preparing for future expansion, including possible local manufacturing.
Speaking of details, Tesla has reportedly signed a lease agreement for five years starting February 16, 2025. The size of the space is around 4,003 square feet (~372 square meters), which is about half the size of an Olympic swimming pool. The company will pay $446,000 (~ ₹3.88 crore) in the first year, with the rent increasing by 5% each year, reaching $542,000 in the fifth year.
According to other recent reports, Tesla’s initial offering in India will be the Model Y, a premium electric SUV, rather than the more affordable Model 3. This suggests that Tesla is initially targeting high-end buyers rather than mass-market consumers.
The Model Y is expected to be priced between ₹70 lakh and ₹90 lakh ($84,000 to $108,000) Tesla’s sales target for the Indian market has been estimated at around 2,500 units annually during the initial phase. These cars will be shipped from Tesla’s Berlin Gigafactory, meaning higher import duties.
The whole scenario is becoming interesting, as while Elon Musk has long opposed India’s high import taxes on EVs, US President Donald Trump criticized the idea of Tesla building a factory in India to bypass tariffs, saying it would be ‘unfair’ to the US economy.
In the meantime, looking at Tesla’s numbers, the company’s global vehicle deliveries reached approximately 1.79 million units in 2024, marking a slight decrease from the 1.81 million units delivered in 2023.
