Curation Team
Amid growing discussions around electric vehicle (EV) import tariffs, Elon Musk-owned Tesla Inc, has picked up a private office space in Mumbai’s Kurla area, near the Bandra-Kurla Complex business district, signalling its strong intent to deepen India plans, said persons with direct knowledge of the development.
The US-based EV major has leased a 30-seater office in a co-working hub located in Phoenix Market City with a monthly rental of Rs 3 lakh, marking a key step in setting up its local operational infrastructure.
The lease agreement is for a year with a three-month lock-in period, indicating short-term flexibility as Tesla continues to explore and consolidate its India plans. The deal between the EV maker’s India arm Tesla India Motor & Energy and the coworking firm EFC was executed earlier this month.
The move assumes significance and indicates Tesla’s approach to India that has shifted into high gear since February, following Prime Minister Narendra Modi’s meeting with Musk during his US visit. The EV giant had earlier raised concerns over steep import duties in India.
“The new office is likely to support early-stage functions such as local hiring, regulatory coordination, vendor meetings, or backend support for its anticipated entry into the Indian EV market,” said one of the persons mentioned above.
This follows the company securing its first India showroom in BKC, marking a key milestone in its long-awaited entry to its growing EV market. This deal had set a national record in terms of lease rentals at Rs 881 per sq ft a month.
ET’s email query to Tesla India, EFC, and transaction advisor and proptech platform Flexo Spaces remained unanswered until the time of going to press.
The latest unit will be Tesla’s third office in India after Pune and a registered office in Bengaluru. The office in Pune’s Viman Nagar spread over 5,850 sq ft is also in a coworking center.
Tesla’s India entry has been the subject of much anticipation, particularly after recent policy tweaks by the Indian government aimed at encouraging global EV manufacturers to invest and set up manufacturing units locally. Though Tesla is yet to confirm a factory location, moves like this lease suggest groundwork is quietly underway.
Real estate experts view the transaction as a ‘toe-in-the-water’ strategy, allowing Tesla to keep a low-cost presence while evaluating long-term commitments. “It’s a modest start, but with a brand like Tesla, even small real estate moves are seen as signals,” said a consultant tracking the commercial leasing market.
