Tesla, the US-based electric vehicle manufacturer, has taken a significant step towards its India launch by securing a lease for its first showroom in Mumbai’s Bandra Kurla Complex (BKC). The company has finalized a deal for a 4,000 sq ft space on the ground floor of a commercial tower in BKC, reportedly at one of the highest lease rates for a commercial property in the country. The monthly rent for the space is estimated at approximately Rs 3.5 million, with a lease agreement set for five years.

In addition to the Mumbai showroom, Tesla is also expected to establish a second showroom in Delhi’s Aerocity, further reinforcing its plans to enter the Indian market. The leasing agreement follows a recent meeting between Tesla’s CEO and India's Prime Minister in Washington, which was soon followed by multiple job listings for the company in India. These developments indicate a revival of Tesla’s long-standing plans to establish a presence in one of the world’s fastest-growing automobile markets.

Tesla’s expansion into India aligns with on-going discussions regarding trade policies and import duties. Currently, India imposes a 110 per cent duty on imported vehicles, which has been a point of concern for the company. Tesla has been advocating for lower import tariffs to make its vehicles more accessible to Indian consumers. In response to these concerns, the Indian government has drafted a new policy that could potentially ease entry for foreign electric vehicle manufacturers.

These strategic moves suggest that Tesla is preparing for a formal market entry in the coming months, coinciding with on-going negotiations around India-US trade agreements and potential regulatory adjustments.

News source: MSN