After posting about two dozen jobs in MumbaiIndia, Tesla Inc. has signed a deal to set up its first ever showroom in BKC (Bandra Kurla Complex). Developments that led to this deal started with Indian Prime Minister Narendra Modi’s recent visit to the United States Of America. Now, we will witness the entry of Tesla into the Indian market with imported CBU vehicles.
Tesla Showroom India – Where will it be?
The first ever showroom from Tesla Inc. in India will be established in the country’s finance capital, Mumbai in Maharashtra. Tesla has signed a lease deal for a duration of 5 years from February 16, 2025 for a 4,003 sq ft area (size of a basketball court) in Mumbai’s Bandra Kurla Complex.
This lease deal is valued for USD 4,46,000 (approx Rs 3.89 Cr) for the first year with a steady 5% rise in rent per year. For the 5 years signed, the total cost for Tesla Inc. is USD 2.5 million (approx Rs 21.77 Cr). This new showroom will be in Maker Maxity building in the retail heart of Bandra Kurla Complex, close to Chatrapati Shivaji Maharaj International Airport Mumbai (BOM).
Model 3 is likely to be the preferred choice for Tesla to launch in India as it is their most affordable offering. We can expect one fully loaded variant, a strategy popular with OEMs importing vehicles in India. That said, Model Y might prove more sensible for Indian conditions owing to its higher ground clearance. The company is will import cars to India via the CBU route. This attracts hefty tariffs that Tesla CEO Elon Musk and US President Donald Trump have expressed reservations on. But as per a new report, Tesla is eyeing for a 0 import tax.
Will the import tariffs be eliminated?
Tariffs as high as 110% are currently implied on CBU car imports. This has been a constant criticising point for Elon Musk and US President Donald Trump. Recent developments between both countries has yielded a proposed trade deal. If this deal is signed between both countries, Indian Government is expected to bring down import tariffs to Zero or close to Zero. Trump Administration is pushing for this trade deal and has criticised the rather steep 110% import tariffs imposed by the Indian Government, threatening reciprocal actions.
After Indian Prime Minister Narendra Modi’s USA visit last month, both nations have agreed to resolve tariff woes aiming for a bilateral trade worth USD 500 billion (approx Rs 43.52 lakh crores) by the year 2030. Even though America’s push is for net zero tariffs, Indian Government is likely to reduce these tariffs significantly, rather than removing them altogether. Indian Government has reportedly met domestic carmakers and discussed implementation of net zero import tariffs. Domestic players have argued against it as it hampers the country’s local production as imports get cheaper.
