Tesla to pay hefty rent for its first showroom in Mumbai's BKC

In what is likely the highest leasing rent for a commercial building, Tesla has finalised an agreement to open its first showroom in Mumbai's Bandra Kurla Complex, a TOI report said.

The publication further quoting property market sources added that the US electric vehicle maker will showcase their car models on the ground floor of the a commercial tower in the Bandra Kurla Complex, occupying an area 4,000 sq ft.

The lease rent for the space will be close to Rs 900 a sq ft, the report added.

The entire duration of the lease will be for a period of five years, with the carmaker expected to open another showroom in Delhi.

Tesla has also selected space to lease in the Aerocity area near New Delhi's international airport for a showroom, said two people familiar with the discussions, who declined to be named as the matter is private, as per the publication.

Opening dates for the outlets have not yet been decided, but Tesla plans "to sell imported EVs in India ... these deals are for showrooms, not service centres," the first person said, adding that Tesla will operate the outlets.

The US carmaker has been hunting for showroom space in India since late last year in order to start sales in the world's third biggest auto market, after putting market entry plans on hold in 2022.

Prime Minister Narendra Modi met Tesla CEO Elon Musk in the United States a few weeks ago and discussed issues including space, mobility and technology.

The company also posted job ads this week for 13 mid-level roles in India, including some store and customer relationship managers.

Musk has long criticised India for having high import tariffs of around 100 per cent on EVs. Tesla has repeatedly lobbied to relax them but has faced opposition from local automakers who think Tesla's entry could hit their EV plans.

(With Reuters inputs)