Elon Musk’s Tesla has leased its first showroom in India, located in Mumbai’s Bandra Kurla Complex, at a record-breaking rate of Rs 881 per square foot, setting a new national benchmark for lease rentals. The company has secured a lease for Unit G-1B, Ground Floor, 2 North Avenue, Maker Maxity, a premium office building in the bustling Bandra Kurla Complex business district, according to a Business Standard report.
The agreement, finalised on February 27, 2025, sees Tesla India committing to a security deposit of Rs 2.11 crore, with a monthly rent of Rs 35.26 lakh. The lease covers a 4,003 square-foot office space, with a 5 per cent annual rent escalation. The lease will extend over a specified period, with the rental rate set at Rs 881 per square foot, states the report.
According to documents obtained by CRE Matrix, a real estate data analytics firm, the starting monthly rent is Rs 35,26,665, reveals the report.
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Details Of The Deal:
- License Period: 5 years
- License Commencement Date: February 16, 2025
- Rent-Free Period: February 16, 2025 to March 31, 2025
- Rent Escalation: 5 per cent per annum
- Monthly Rent: Rs 35,26,665
- Security Deposit Paid: Rs 2,11,59,990
This lease agreement represents a significant step in addressing India’s growing demand for premium electric vehicles, with a long-term tenure of five years.
The deal follows heightened discussions about Tesla’s entry into the Indian market. On February 13, Elon Musk met with Prime Minister Narendra Modi in Washington, DC, sparking speculation about the company’s long-awaited launch. Since then, Tesla has posted 20 job openings in India—15 in Mumbai and five in Pune—and has been actively scouting showroom locations in Mumbai and Delhi.
Tesla has long had its sights set on India, initially aiming for a 2022 launch. However, the company delayed its entry due to regulatory challenges, high import duties, and the need for better electric vehicle infrastructure.
