Mumbai’s commercial real estate market just hit a significant milestone—and Tesla is leading the charge.

The electric vehicle giant has leased a prime 4,003 sq ft showroom in Bandra Kurla Complex (BKC), Mumbai’s premier business district, signalling a strong commitment to India’s electric vehicle market. The showroom deal, signed in February 2025, set a new rental benchmark at INR 881 per sq ft, with a five-year lease with a 5% annual escalation. Tesla also deposited a hefty INR 2.11 crore as security, underscoring its strategic value on the location.

This high-profile move stems from discussions between Elon Musk and Indian Prime Minister Narendra Modi, who explored ways to accelerate the adoption of electric mobility in India. With this BKC location expected to serve as Tesla’s flagship showroom in the country, the deal marks more than just real estate—it’s a branding statement aimed at premium customers in India’s financial capital.

Beyond the glitz of BKC, Tesla has taken a more operational step forward with a new 30-seater office in Phoenix Market City, Kurla. This office space, leased for INR 3 lakh per month, will serve as the operational nerve centre for Tesla’s entry into India. The lease features a one-year term with a three-month lock-in, providing the company with flexibility as it scales its local operations.

This dual-leasing strategy demonstrates Tesla’s intention to strike a balance between visibility and operational agility. While the BKC showroom anchors the brand in a high-value location, the Kurla office will support backend functions, including local hiring, regulatory filings, and coordination of service and sales infrastructure.

Industry insiders view this as a sign of Tesla’s long-term ambitions in India—and it’s already having a ripple effect on the city’s commercial leasing sector. With Grade A office space in short supply and international firms ramping up their India presence, Tesla’s entry is expected further to fuel demand in Mumbai’s premium commercial corridors.

Tesla’s India launch aligns with the government’s push for greener mobility solutions. The electric vehicle sector has been gaining traction, and Tesla’s arrival could catalyze deeper investments into EV infrastructure, battery tech, and renewable energy tie-ups. While manufacturing or assembly facilities haven’t been announced yet, experts believe these leases lay the groundwork for larger operational expansions.

By securing premium commercial real estate early, Tesla is preparing to hit the ground running. The leasing choices reflect a carefully staged market entry—high-end visibility paired with strategic backend support—ensuring that the brand is seen and ready to operate efficiently from day one.

As India’s electric vehicle ecosystem evolves, Tesla’s Mumbai real estate footprint may be just the beginning.