Tesla opens new office in Mumbai's Bandra-Kurla Complex
Tesla’s latest office in Mumbai’s Bandra-Kurla Complex (BKC) is not just another corporate address — it marks a calculated move in the electric vehicle (EV) giant’s carefully charted India strategy. Nestled within Phoenix Marketcity Mall’s coworking hub, the 30-seater space, leased for ₹3 lakh a month, signals more than mere expansion. It reflects a strategic shift towards deepening local operations, from hiring to regulatory coordination, in a market poised for an EV transformation.
From Bengaluru to BKC: Building the Foundations of Tesla’s India Push
The Mumbai office becomes Tesla’s third operational base in India, joining its registered office in Bengaluru and a coworking setup in Pune. However, the real headline-grabber came earlier this year when Tesla secured a 4,000 sq ft showroom in BKC’s Maker Maxity — a deal that shattered rental records at ₹35 lakh a month. At nearly ₹900 per sq ft, the deal underlines Tesla’s confidence in Mumbai’s luxury retail potential. This showroom, expected to showcase models imported from Tesla’s Berlin factory, will stand close to Apple’s flagship store in India, positioning Tesla amongst a cluster of premium global brands.
Flexibility First: Short Leases, Long-Term Vision
One notable aspect of Tesla’s India approach is its nimble planning. The Mumbai office’s one-year lease, with a three-month lock-in period, offers flexibility, balancing ambition with caution. Similarly, the BKC showroom’s five-year agreement with a 5% annual rent escalation protects against market volatility while keeping future options open. We believe this flexibility is no accident, but a deliberate strategy that allows Tesla to quickly scale up ow down depending upon how India’s EV policy landscape continues to evolve.
Delhi in the Crosshairs: Eyeing Aerocity and Beyond
Tesla’s focus is not limited to Mumbai. It is also preparing a move into Delhi’s Aerocity, a prominent transit-oriented hub near the international airport. This dual-city strategy — targeting India’s financial and political capitals — mirrors Tesla’s tactics in other Asian markets. By establishing a presence in high-visibility urban centres, Tesla is not merely setting up showrooms; it is cultivating a premium brand image amongst India’s urban elite.
The Modi-Musk Meeting and Policy Shifts
Tesla’s acceleration in India can be traced back to June 2023, when Prime Minister Narendra Modi met Elon Musk in New York. Following the meeting, the Indian government introduced incentives for EV manufacturers, including reduced import duties for those committing to local production within three years. While Tesla has yet to officially announce assembly plans, its ₹2.11 crore security deposit for the BKC showroom suggests it is planning for the long haul.
Hiring Moves and Manufacturing Possibilities
Tesla’s Indian careers portal currently lists around 30 openings across legal, finance, and technical roles, indicating that the company is laying the groundwork for a more significant operational presence even before the first cars hit showrooms. Although Tesla remains tight-lipped about manufacturing plans, industry insiders hint that the Mumbai office could evolve into a hub for supplier negotiations and potential factory site scouting.
Should Tesla choose to manufacture in India, states like Maharashtra and Gujarat — with their strong automotive ecosystems and port access — are seen as likely candidates. For now though, we believe Tesla will largely sell imported cars—India CFO made it clear thar EV sales must hit 3 million a year for Tesla to start making its cars in India. That is a long way away.
Charging into a Crowded Yet Promising Market
Tesla’s arrival coincides with a critical moment for India’s EV sector. While local players like Tata Motors dominate the affordable end of the market, Tesla’s premium models will test consumers’ willingness to pay upwards of ₹70 lakh for a Model Y. Early adopters may be willing to pay the premium, but broader success will likely depend on local assembly efforts.