Tesla takes 4,000-sq ft in BKC for ₹35L a month. Can Indians afford Elon Musk's cars?

Tesla has taken a significant step towards its India expansion, reportedly securing a prime office space in Mumbai’s Bandra Kurla Complex (BKC). The Elon Musk-led electric carmaker has leased a 4,003-square-foot space in the Maker Maxity building.

The licensee for the agreement, reports claim, is Tesla India Motor & Energy Pvt., which currently operates from Panchsheel Business Park in Pune’s Viman Nagar. The licensor is Univco Properties LLP. As part of the lease deal, Tesla India has put down a security deposit of Rs 2.11 crore and will pay Rs 35.26 lakh in monthly rent, with a 5% annual escalation.

The agreement is valid for five years.

BT could not independently verify the claims.

The move comes amid intensifying discussions surrounding Tesla’s entry into India. On Feb. 13, Musk met Prime Minister Narendra Modi in Washington, DC, fueling speculation about the company’s long-awaited arrival. Since then, Tesla has listed 20 job openings across India—15 in Mumbai and five in Pune—and is actively exploring showroom locations in Mumbai and Delhi.

Tesla’s India launch is likely to happen in the second half of 2025, with the Model Y expected to be the first offering. The vehicle is anticipated to be priced between Rs 60-70 lakh, positioning it against entry-level electric offerings from Mercedes-Benz, BMW, and Audi.

If Tesla’s pricing stays above Rs 50 lakh, it could challenge the dominance of German luxury carmakers. If priced in the Rs 25-35 lakh range, the competition would extend to Indian manufacturers like Tata Motors and Mahindra.

For Tesla, India could provide a much-needed boost. The company is facing slowing sales globally, with declining shipments across key markets like the U.S., Germany, and China—where it already operates multiple factories. However, an immediate manufacturing facility in India appears unlikely, with Tesla initially expected to import its vehicles.

How affordable are Tesla's cars?

The Tesla Model 3, the company’s most affordable offering, is expected to cost between Rs 35-40 lakh in India. This estimate considers a base price of around USD 35,000 (approximately Rs 30.4 lakh) in the U.S., reduced import duties of 15-20%, and additional costs such as road tax and insurance. A calculation suggests that the total cost of owning a Model 3 in India could be around Rs 45.5 lakh, factoring in road tax (Rs 3.5 lakh), insurance (Rs 1.75 lakh), and an import duty of 15% (Rs 5.25 lakh).