Elon Musk’s electric vehicles (EVs) manufacturing company, Tesla Inc has taken a significant step toward India debut by securing its maiden showroom in the country in Mumbai’s upscale business district Bandra Kurla Complex (BKC) setting a new national record in terms of lease rentals.
The American multinational company has entered into an agreement with a Maker Group company to lease space on the ground floor of 2 North Avenue of commercial complex Maker Maxity at monthly rentals of Rs 881 per sq ft, surpassing the earlier benchmark set by Apple Inc at Rs 738 per sq ft in January.
Marking a key milestone in its long-anticipated entry into the Indian market, Tesla’s India arm, Tesla India Motors & Energy, has leased the unit spread over a built up area of 4,003 sq ft from Univco Properties LLP for a long-term tenure of five years.
The showroom is expected to serve as a flagship destination for Tesla’s operations in India, signalling the brand’s commitment to catering to the country’s growing demand for premium electric vehicles.
As per the agreement registered in the last week, the lease tenure will start on February 16, showed the documents accessed through CRE Matrix, realty data analytics platform. Tesla will get a rent-free period until March 31 and the rental will escalate 5% every year.
The company has paid a security deposit worth Rs 2.11 crore at the time of registration of the deal.
During the first year, the company will pay monthly rental of Rs 35.26 lakh in the first year and Rs 42.86 lakh in the final year of tenancy. While the landlord will not be able to terminate the lease during the entire term, the agreement includes the first lock-in period of 36 months for the tenant.
ET’s email query to Tesla and Maker Group remained unanswered until the time of going to press.
Tesla has been actively exploring opportunities to enter the Indian market, aiming to introduce its popular range of electric vehicles to the country. The company has been in discussions with government authorities, scouting for showroom locations, and evaluating potential manufacturing sites to establish a strong foothold in one of the world’s fastest-growing automobile markets.
ET has already reported that Tesla has begun scouting for land to set up an EV manufacturing plant and Maharashtra is the initial identified destination. The company’s plans gathered steam after Tesla boss Musk met Prime Minister Narendra Modi earlier this year. According to reports, Musk has sought lower tariffs on imported EVs.
