Tesla’s India entry begins from Mumbai, model Y launch expected in 2025
Tesla has made a security deposit of ₹2.11 crore and will pay ₹35.26 lakh in monthly rent, with a 5% annual increase.
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Tesla has moved a step closer to its India expansion by securing office space in Mumbai’s Bandra Kurla Complex (BKC). The electric vehicle giant, led by Elon Musk, has reportedly leased a 4,003-square-foot space in the Maker Maxity building.
The lease agreement is under Tesla India Motor & Energy Pvt., which currently operates from Pune’s Viman Nagar. Univco Properties LLP is the licensor for the deal. Tesla has made a security deposit of ₹2.11 crore and will pay ₹35.26 lakh in monthly rent, with a 5% annual increase. The agreement is set for a five-year term, according to a report by Business Today.
This move comes amid increasing speculation about Tesla’s entry into India. In February, Elon Musk met Prime Minister Narendra Modi in Washington, DC, further fuelling discussions. Since then, Tesla has listed 20 job openings in India—15 in Mumbai and five in Pune—and is actively scouting for showroom locations in Mumbai and Delhi.
Tesla is expected to officially launch in India in the second half of 2025, with the Model Y likely to be its first offering. The vehicle is anticipated to be priced between ₹60-70 lakh, placing it in direct competition with entry-level electric cars from Mercedes-Benz, BMW, and Audi. If Tesla’s pricing stays above ₹50 lakh, it will challenge German luxury carmakers. However, a price range of ₹25-35 lakh would put it in competition with Indian brands like Tata Motors and Mahindra.
Tesla’s India entry could help counter slowing global sales, as the company has seen declining shipments in key markets such as the US, Germany, and China. However, an immediate manufacturing facility in India is unlikely, with Tesla expected to import vehicles initially.
The Tesla Model 3, the company’s most affordable offering, is projected to cost between ₹35-40 lakh in India. This estimate considers a base price of around USD 35,000 (approximately ₹30.4 lakh) in the US, reduced import duties of 15-20%, and additional costs such as road tax and insurance. Factoring in road tax (₹3.5 lakh), insurance (₹1.75 lakh), and an import duty of 15% (₹5.25 lakh), the total cost of owning a Model 3 in India could be around ₹45.5 lakh.
