Mumbai’s dug-up roads will soon witness Tesla’s electric vehicles driving on them. Yes you heard it right! Elon Musk’s ambitious brainchild, Tesla, is set to open its first showroom in Mumbai, India. Keep reading to know more about the latest addition to Mumbai’s roads.
Tesla’s Lucrative Deal In Mumbai
American electric carmaker Tesla is planning to go big in India. The company, owned by Elon Musk has signed a 5-year lease deal in Mumbai. With an aim to sell its imported cars in India, the company aims to begin operations in the City of Dreams, Mumbai.
As per its registration papers, Tesla has signed a 5-year lease, starting February 16, 2025. It will pay a rent of about $446,000 (roughly INR 3,88,19,605 or 3.8 crores) for the first year for a 4,003 square feet space. This space is almost the size of a basketball court.
The rent will increase about 5% every year. By the fifth year, the company will be paying a rent of a whopping $542,000 (roughly INR 4,71,75,394 or 4.7 crores), according to the registered lease document provided to Reuters by analytics firm CRE Matrix.
As per news, Tesla had selected the cities of Mumbai and New Delhi as destinations for its showrooms. During the Indian Prime Minister Narendra Modi’s visit to the United States, he met not just President Donald Trump but also Elon Musk, who heads the Department of Government Efficiency.
The Mumbai Showroom will be set up in the economic hub of the city – Bandra Kurla Complex. Moreover, the showroom will be close to the city’s Chhatrapati Shivaji Maharaj International Airport as well as the Apple retail outlet in Jio World Drive.
While Tesla has ambitious plans to sell its imported electric vehicles in India, there are certain concerns that it is yet to tackle. Keeping aside the unpreparedness of Indian roads and infrastructure to handle electric vehicles, the company is also facing tariffs of over 100%.
Musk has repeatedly complained about these steep tariffs, with even President Trump supporting Musk’s complaints. In fact, Trump has expressed that he will take reciprocal action against India’s high tariffs, particularly concerning automobiles. The United States wants India to eliminate tariffs on car imports under a proposed trade deal between the two nations. However, New Delhi is reluctant to immediately bring down such duties to zero.
Summing Up
Elon Musk’s aim to sell imported Tesla vehicles surely feels like a new chapter, both for the company and the fate of electric vehicles in India. Tesla has already signed a 5-year lease deal in Mumbai and you might soon see Tesla’s cars running on Mumbai’s streets. However, it will be worth keeping a watchful eye on how India shapes up its tariffs for its allies in the United States.
