Tesla’s Expansion into India: New Office Space in Mumbai
Tesla is actively moving forward with its India expansion, having reportedly acquired a prominent office location in the Bandra Kurla Complex (BKC) of Mumbai. The electric car manufacturer, headed by Elon Musk, has leased a space measuring 4,003 square feet in the Maker Maxity building.
Sources indicate that the lease agreement is with Tesla India Motor & Energy Pvt., which currently operates out of Panchsheel Business Park in Viman Nagar, Pune. The property owner for this lease is Univco Properties LLP. Tesla India has committed to a security deposit of Rs 2.11 crore and will be responsible for a monthly rental fee of Rs 35.26 lakh, which includes a 5% annual increase.
This lease is set for a duration of five years.
BT was unable to independently verify these details.
This development aligns with heightened discussions about Tesla’s imminent debut in India. On February 13, Musk had a meeting with Prime Minister Narendra Modi in Washington, DC, which heightened speculation regarding the company’s anticipated entry. Since that meeting, Tesla has posted 20 job openings throughout India, with 15 in Mumbai and five in Pune, and is diligently scouting for showroom placements in both Mumbai and Delhi.
The anticipated launch of Tesla in India is projected for the latter half of 2025, with the Model Y expected to be its first release. This model is estimated to range between Rs 60-70 lakh, putting it in competition with entry-level electric vehicles from brands such as Mercedes-Benz, BMW, and Audi.
Should Tesla’s pricing remain above Rs 50 lakh, it could pose a significant challenge to the leadership of German luxury car makers. Conversely, if the pricing falls in the Rs 25-35 lakh range, it would also compete with Indian companies like Tata Motors and Mahindra.
For Tesla, establishing a presence in India could be crucial. The company is currently encountering a slowdown in global sales, experiencing a decline in shipments in key markets including the U.S., Germany, and China—where it operates several factories. However, an immediate manufacturing facility in India does not seem feasible, as Tesla is expected to initially import its vehicles.
How affordable are Tesla’s cars?
The Tesla Model 3, recognized as the company’s entry-level model, is projected to be priced between Rs 35-40 lakh in India. This estimation is derived from a base price of approximately USD 35,000 (about Rs 30.4 lakh) in the U.S., adjusted import duties of 15-20%, along with additional expenses like road tax and insurance. A detailed calculation indicates that the overall cost of purchasing a Model 3 in India could reach around Rs 45.5 lakh, which includes road tax (Rs 3.5 lakh), insurance (Rs 1.75 lakh), and a 15% import duty (Rs 5.25 lakh).