Tesla has leased a 4,000-square-foot space in Mumbai’s Bandra Kurla Complex (BKC) for its first showroom in India. Reports confirmed the deal on Wednesday, marking a major step in Tesla’s entry into the country.

Tesla Signs High-Rent Deal

The showroom is in Maker Maxity, a prime business district. Tesla will pay over ₹35 lakh per month in rent. Additionally, the agreement includes some parking spaces. The lease runs for five years, with a 5% rent increase each year. As a result, the rent will reach nearly ₹43 lakh per month by the final year.

Showroom Near India’s First Apple Store

Interestingly, the location is on the ground floor, close to India’s first Apple Store. Tesla leased the property from Univco Properties. Moreover, Univco and a Tesla subsidiary in Pune registered the agreement on February 27.

Financial Terms of the Lease

At the current rate, Tesla will pay ₹881 per square foot each month. Furthermore, the company has deposited ₹2.11 crore as security.

Undoubtedly, Tesla’s first showroom has created excitement. Experts believe this move could eventually lead to local manufacturing or assembly in India.