Tesla set to open showroom in Mumbai, signs 5-year lease for India expansion: Annual rent, agreement details and more

Tesla has signed a lease agreement for a showroom in Mumbai, as the company is in the process of selling imported vehicles in India, reported Reuters. This follows an earlier decision to abandon similar plans last year.

According to registration documents reviewed by the wire services, the American electric vehicle manufacturer has secured a five-year lease starting on 16 February 2025. The showroom will be located in the Maker Maxity building, a business and retail hub in Bandra Kurla Complex, near Mumbai’s airport.

The lease covers a 4,003-square-foot (372-square-metre) space, with an initial annual rent of approximately $446,000 (around ₹3.7 crore). The agreement includes a five per cent yearly rent increase, reaching about $542,000 (around ₹4.5 crore) in the final year.

Reports suggest that Tesla has also identified locations for showrooms in New Delhi and Mumbai. The development comes after Tesla’s Chief Executive Elon Musk met Prime Minister Narendra Modi in the United States last year.

Tesla has not yet commented on the lease agreement. The company has faced regulatory and logistical challenges in its efforts to enter the Indian market.

Reuters also reported earlier that the United States is urging India to remove tariffs on car imports as part of a proposed trade deal, but New Delhi remains hesitant to eliminate them entirely, though it is considering further reductions, citing its sources.

According to one of the three sources familiar with the matter, the Reuters report highlighted that India's steep auto tariffs are expected to be a key point of discussion in upcoming formal negotiations for a bilateral trade agreement. The talks could pave the way for the American company, which is preparing to enter the Indian market.

To recall, India imposes car import taxes of up to 110 per cent, a rate that Elon Musk has criticised as one of the highest globally. Last year, Tesla put its plans to enter the world's third-largest automobile market on hold for the second time.

(With inputs from Reuters)