Elon Musk's Tesla Inc. is reportedly making significant strides towards its formal entry into India, the world's third-largest automobile market, with plans to launch its first showrooms by July. This move marks a pivotal moment for the electric vehicle (EV) giant's expansion into a crucial global market, with initial operations focused on key metropolitan areas.

The first batch of Tesla vehicles destined for India, specifically Model Y rear-wheel drive SUVs, has already arrived in the country, shipped from the company's manufacturing facility in China. The Model Y holds the distinction of being the world's best-selling electric car, setting the stage for its highly anticipated debut in the Indian market.

Tesla's inaugural showroom in India is slated to open in Mumbai by mid-July, followed by another in New Delhi. The company has secured prime real estate locations, indicative of its long-term commitment and strategic approach to the Indian retail landscape.

In Mumbai, Tesla has finalized a deal for 4,000 square feet of showroom space in the prestigious Bandra Kurla Complex (BKC), India's costliest commercial district. Property registration documents, accessed by CRE Matrix, reveal that the lease for this space, which includes two car parking spots, amounts to ₹23.38 crore for a five-year period. The per square foot rent is set at ₹881, making this the most expensive auto showroom lease deal in the country to date. The transaction, registered on February 27, 2025, between Univco Properties LLP and Tesla India Motor and Energy Pvt Ltd, specifies a lease tenure starting February 16, 2025. A rent-free period was observed until March 31, 2025, with rental payments commencing from April 2025 until February 2030. The monthly rent begins at ₹35.26 lakh, escalating by 5% annually, reaching ₹42.86 lakh in the fifth year. A security deposit of ₹2.11 crore was also provided.

Beyond the showroom, Tesla has also established a presence for its operational teams in Mumbai. The company has leased 30 seats in a managed co-working office space within Phoenix Market City, near BKC, for a monthly rent of ₹3 lakh. This one-year short-term lease, with a three-month lock-in period, signifies Tesla's preference for flexible workspace solutions during its initial phase of establishment in India.

Furthermore, Tesla India Motor and Energy Pvt Ltd has secured a significant 24,565 square feet of warehouse space at Lodha Logistics Park in Mumbai’s Kurla area. This facility, leased for a total of ₹24.38 crore over five years, will serve as Tesla’s first dedicated vehicle service center in India. The lease agreement, registered on May 16, 2025, details two ground-floor units with over 18,000 sq ft of carpet area. The starting monthly rent for this Grade A city warehousing facility is over ₹37.53 lakh, subject to a 5% annual escalation. Tesla will also pay ₹1.62 crore in common area maintenance charges and has provided a security deposit of ₹2.25 crore. The chargeable license period for this service center begins on June 1, 2025.

In New Delhi, Tesla has also finalized a showroom space of approximately 4,000 square feet in the Aerocity area. This location, situated in a Brookfield property near the Indira Gandhi International Airport, commands an estimated monthly rent of ₹25 lakh. The property's ownership has recently transitioned, with Bharti Enterprises Limited transferring its stake in Rostrum Realty to the Brookfield Group.

Despite these significant real estate investments for retail and service infrastructure, Union Minister for Heavy Industries HD Kumaraswamy has indicated that Tesla is currently focused solely on expanding its showrooms in India and is not keen on setting up manufacturing and production units in the country at this time.