Tesla signs 5-year lease for Mumbai showroom to sell imported EVs

Tesla has leased a showroom space in Mumbai as it moves forward with plans to sell imported vehicles in India. As per registration documents, Tesla has signed a five-year lease for a showroom in the Maker Maxity building, a commercial and retail hub in Bandra Kurla Complex, starting on February 16, 2025. The location is near Mumbai’s airport, positioning the company in a prime business district as it prepares to enter the Indian market, according to a Reuters report.

Tesla has secured a 4,003-square-foot showroom space, with an initial annual rent of approximately Rs. 3.7 crore ($446,000). The lease agreement includes a five per cent yearly escalation, bringing the rent to nearly Rs. 4.5 crore ($542,000) by the final year.

Tesla’s upcoming showroom will be located in the Maker Maxity building in Mumbai’s Bandra Kurla Complex, a key business and retail hub near the airport, as per official records. Reports indicate that the company is also exploring showroom locations in New Delhi and Mumbai. This move follows Tesla CEO Elon Musk’s meeting with Prime Minister Narendra Modi in the U.S. last year.

Tesla has not issued a statement regarding the lease agreement. The company has faced multiple regulatory and logistical hurdles in its attempt to enter the Indian market.

Meanwhile, the report suggests that the U.S. is pressing India to lower tariffs on car imports as part of ongoing trade discussions. However, Indian authorities remain cautious about fully removing these duties and are instead considering partial reductions.

India currently imposes import duties of up to 110%, a rate that Tesla CEO Elon Musk has previously criticised as among the highest in the world. Last year, Tesla put its India plans on hold for the second time, citing these steep tariffs as a key challenge.