By Somya Panwar
Tesla, US electric carmaker has officially signed the lease, moving towards its goal to sell imported cars in India and is going to open its first showroom in Mumbai, after dropping similar plans last year.
The company has signed a five year lease on February 16, 2025 and will be paying a rent of about $446,000 for the first year for a space, almost a size of basketball court the paper shows that the area is around 4,003 square feet (372 square meters).
According to the registered lease, provided to Reuters by analytics from CRE Matrix, the rent will increase by 5 percent every year and by the fifth year is expected to reach about $542,000.
The paper shows that the showroom is all set to be situated in the business and retail hub of Bandra Kurla complex which is near the city’s airport in the Market Maxity building.
The move was made by Tesla after the import taxes on certain EVs were reduced by India in March, which created a favourable market for other companies to enter in Indian Automobile market. According to the Reuters report, only companies committing to invest at least $500 million in India will enjoy the benefits of tax reduction.
The reports from industry analysts cited by Reuters have suggested that the step taken by Tesla will pave the way into the Indian market to evaluate the response to its vehicles initially before they convert the deal into a larger-scale investment commitment.
India in order to show openness to trade, has recently reduced the import tariffs on nearly 30 items which includes high-end motorcycles, and also shared the plans to review surcharges on luxury cars.