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Tesla, the electric car maker of mass-market cars, has announced it will open its first Indian showroom. The launch is significant for the company as it ventures into the world's largest automobile market.
The company's inaugural Tesla showroom will be located in the city of Mumbai, in the high-end Bandra Kurla Complex (BKC). Tesla has leased a 4,000 square foot office space in the Maker Maxity business park. The rent for the space for a month would be Rs. 35 lakh and would rise by 5% annually. The lease period is five years, and the rent would be paid free until March 2025. Tesla also deposited Rs 2.11 crore as security.
The showroom will be a flagship store for Tesla in India and will likely be a key component of establishing the brand presence in India. It will be Tesla's first physical store in India and will give the company a chance to test the waters before they invest further.
To start with, Tesla will be bringing EVs to India for sale and compete with brands like BYD, Mercedes-Benz, Audi and others. This is after India's government changed its taxation policy. India reduced electric vehicle import duty in March 2025. This makes it easier for businesses such as Tesla to ship vehicles to India without exposing them to high taxes that were earlier 100% of imported vehicles.
Tesla's foray into India is also a part of the expansion plan of the company in new geographies. CEO Elon Musk himself has spoken about the company's interest in establishing an office in India, and these moves indicate that Tesla is going ahead with its plans.
Although Tesla will start with imported cars, it also wishes to open production facilities within India. Tesla has already initiated discussions with the Indian government on opening a domestic plant. India has also granted tax exemptions to companies ready to invest in local production of EVs, which can make Tesla open a factory in India.
Tesla's entry into India comes after a 2024 meeting between Indian Prime Minister Narendra Modi and Elon Musk in which Tesla's entrance into the Indian market is said to have been negotiated.
Tesla's entrance into India has been awaited with much eagerness for quite a while. Elon Musk visited Indian Prime Minister Narendra Modi in 2024 and talked to him about Tesla potentially entering India. The discussion of reducing tariffs for imported EVs during the visit made it increasingly likely that Tesla would establish operations in India. These talks pushed Tesla toward expanding its business to India.
While the exact timeline for Tesla's vehicle launch in India hasn't been released, the debut of the first showroom is an encouraging indication of what's ahead. It will provide Indian buyers with a firsthand experience of Tesla's cutting-edge electric vehicles and discover the advantage of green mobility.
Tesla's venture to bring in and sell EVs and its future manufacturing plans in India are an indicator of the company's seriousness in being in India. Showing the Mumbai showroom is just the beginning of what could be an even bigger space for the company in India. Tesla still needs to announce the precise timing for the introduction of its vehicles to India.
Meanwhile, the company will be busy raising awareness and selling electric cars to Indian buyers, and it will keep reviewing its long-term plan in India.
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