New Delhi: One of the world’s leading electric vehicle (EV) manufacturers, Tesla, is set to open its first showroom in India in Mumbai. The showroom will be located in the Bandra-Kurla Complex (BKC), and the company has finalized the lease agreement for the space.
According to property market sources, Tesla has leased a 4,000-square-foot space on the ground floor of a commercial tower in BKC. This location will serve as a showroom where the company will display and sell its car models. Tesla will pay a monthly lease rent of approximately ₹35 lakh, with the lease agreement set for five years.
Earlier reports had suggested that Tesla planned to open stores in both Delhi and Mumbai. It is expected that Tesla will open its second store in Delhi’s Aerocity Complex. Tesla CEO Elon Musk had previously met with Prime Minister Narendra Modi during his visit to the U.S., after which the company invited applications for various positions in India.
Tesla Likely to Start EV Sales in India by April
Following the setup of the showroom in Mumbai and the hiring process for various roles in India, Tesla is expected to enter the Indian market and begin selling cars by April.
Currently, Tesla does not have a manufacturing unit in India. Instead, the company will import vehicles from its Gigafactory in Berlin-Brandenburg, Germany, for sale in India. Reports suggest that Tesla is preparing to introduce its most affordable EV model, which could be priced at around $25,000 (approximately ₹21.71 lakh). However, there is no confirmation yet regarding which specific models will be available in India.
High Import Duties on EVs in India
Under the current import policy in India, a Tesla car priced at ₹21 lakh could cost up to ₹36 lakh in the Indian market due to high import duties. Currently, imported electric cars attract a customs duty of up to 75%. However, if Tesla signs an agreement (MoU) with the Indian government, cars priced above $35,000 may be subject to only a 15% duty.
This tax reduction will be applicable for up to 8,000 imported cars per year. The Indian government is also expected to introduce a new EV policy in April, which may include provisions to lower import duties for EV manufacturers that commit to setting up local production units in India.