Tesla Inc., led by the world's richest man, Elon Musk, has secured its first showroom in India, marking a significant step forward in its expansion into the country. The American electric vehicle giant has leased a 4,000-square-foot space in Mumbai's Bandra Kurla Complex for a record-breaking Rs881 per square foot - the highest lease rental ever recorded in India.The showroom, located in Maker Maxity, is a significant step for Tesla as it establishes its presence in the Indian market.
According to CRE Matrix documents, Tesla will pay a monthly rent of more than Rs35 lakh for the space, which includes parking. The lease is for five years, with a 5% annual rent escalation, bringing the monthly rental to nearly Rs 43 lakh over time.
The showroom, located on the ground floor near India's first Apple Store, has been leased from Univco Properties. Univco and one of Tesla's Pune-based subsidiaries entered into a rental agreement on February 27.
Tesla's long-awaited arrival in India is generating a lot of buzz, and this showroom could pave the way for future manufacturing or assembly operations in the country.
Here are the details of the deal:
- The agreement's license period is set to last five years, beginning on February 16, 2025. A rent-free period has been granted from the start date to March 31, 2025.
- Following this period, the monthly rent will be Rs 35,26,665, with a 5% annual escalation. Additionally, a security deposit of Rs 2,11,59,990 has been paid as part of the agreement.
Tesla's Cheapest Car
Previously, brokerage CLSA predicted that Tesla's cheapest car would cost between Rs 35 lakh and Rs 40 lakh in India. The price estimate includes road taxes, insurance, and other expenses.
