In a significant move for its Indian expansion, Tesla India Motor and Energy Pvt Ltd has leased 24,565 sq ft of warehouse space in Mumbai’s strategic Kurla area, marking a key step in establishing a robust presence in the country’s growing electric vehicle (EV) ecosystem. The lease deal, worth ₹24.38 crore for a five-year period, reflects Tesla’s continued investment in high-impact commercial and logistics assets across India. With a 5% annual rent escalation, the deal further underscores Tesla’s commitment to India despite its reluctance to establish production units in the country. Here’s everything you need to know about this major real estate deal and what it means for Tesla’s future in India.
1. Details of Tesla’s New Warehouse Lease in Kurla
Tesla has secured a sizable warehouse at the Lodha Logistics Park in Mumbai’s Kurla area, a prominent business and commercial hub. The warehouse spans over 24,500 sq ft, with the lease agreement slated to last for five years. The lease includes two ground-floor units, offering a combined carpet area of over 18,000 sq ft. Tesla will be paying a rent of over ₹37.53 lakh per month for the first year, with a 5% annual escalation, bringing the total rent to more than ₹24 crore by the end of the lease term.
The lease also includes an additional ₹1.62 crore for common area maintenance charges over the five-year period. Tesla has provided a security deposit of ₹2.25 crore, according to property registration documents accessed by CRE Matrix.
Key Lease Details:
- Lease Area: 24,565 sq ft
- Monthly Rent: ₹37.53 lakh (first year), with 5% annual escalation
- Total Rent: ₹24.38 crore over five years
- Common Area Maintenance Charges: ₹1.62 crore
- Security Deposit: ₹2.25 crore
- Lock-In Period: 5 years (ends April 19, 2030)
2. Strategic Location: The Importance of Kurla
The choice of Kurla for this lease is strategic, positioning Tesla closer to key commercial and logistics hubs in Mumbai. The warehouse is approximately 4 km from the US Consulate in Bandra Kurla Complex (BKC), which is known for its business-friendly infrastructure and prime connectivity. This proximity will allow Tesla to efficiently manage its operations, including warehousing and logistics for the growing EV demand in India.
Abhishek Kiran Gupta, CEO of CRE Matrix, states, “This 24,565 sq ft lease at ₹153 per sq ft is more than just a real estate transaction; it is a signal of intent. Tesla is building a high-impact EV ecosystem across India, backed by strategic real estate investments.”
Proximity to Key Locations:
- 4 km from the US Consulate in BKC
- Close to prime commercial and business districts
- Located within a 10-km radius of Tesla’s other leased spaces in Mumbai
3. Tesla’s Expanding Real Estate Footprint in Mumbai
This warehouse lease follows a series of other significant real estate deals by Tesla in Mumbai, signaling its growing footprint in India. Earlier this year, Tesla took on 4,000 sq ft of showroom space in the prestigious Bandra Kurla Complex (BKC), one of India’s most expensive commercial districts, for a lease worth ₹23.38 crore over five years. This deal set a national record for auto showroom lease rentals at ₹881 per sq ft, further emphasizing Tesla’s commitment to a long-term presence in India’s automotive market.
Additionally, in April 2025, Tesla secured managed office space in BKC with a monthly rent of ₹3 lakh for 30 seats. These strategic leases are part of Tesla’s broader strategy to establish an ecosystem that includes showrooms, offices, and warehouses within key urban centers.
Recent Lease Deals in Mumbai:
- March 2025: 4,000 sq ft showroom in BKC for ₹23.38 crore (₹881 per sq ft)
- April 2025: Managed office space near BKC for ₹3 lakh per month
4. Tesla’s Strategic Intent in India
Tesla’s real estate moves in India are carefully designed to support its broader business strategy. While Tesla has expressed little interest in setting up manufacturing units in India, it has been keen on expanding its retail and service infrastructure. With high-profile showrooms, office spaces, and now a large-scale warehouse in Kurla, Tesla is strengthening its logistical and commercial ecosystem across multiple Indian cities.
Gupta adds, “Tesla’s India entry is taking shape through a deliberate, multi-city rollout. These strategic assets—combined with retail showrooms and offices—underscore Tesla’s long-term commitment to India’s growing electric vehicle market.”
Quick Facts at a Glance
| Key Factor | Details |
|---|---|
| Warehouse Lease Area | 24,565 sq ft |
| Lease Term | 5 years (ends April 19, 2030) |
| Monthly Rent (Year 1) | ₹37.53 lakh |
| Total Rent (5 years) | ₹24.38 crore |
| Security Deposit | ₹2.25 crore |
| Common Area Maintenance | ₹1.62 crore over five years |
| Nearby Locations | 4 km from US Consulate, within 10 km of other Tesla properties |
Frequently Asked Questions (FAQ)
1. Why did Tesla lease warehouse space in Mumbai’s Kurla?
Tesla leased this space to expand its logistics and warehousing capabilities in India as part of its growing EV ecosystem. The Kurla area offers strategic proximity to key commercial hubs, enhancing operational efficiency.
2. What is the total cost of Tesla’s warehouse lease in Mumbai?
Tesla has leased the 24,565 sq ft warehouse in Kurla for a total rent of ₹24.38 crore over five years, with a starting rent of ₹37.53 lakh per month.
3. Does Tesla plan to set up manufacturing units in India?
No, Tesla has shown no interest in establishing manufacturing or production units in India, as confirmed by Union Minister HD Kumaraswamy. Tesla is more focused on expanding its showrooms and infrastructure.
4. What other real estate deals has Tesla made in Mumbai?
In addition to the warehouse in Kurla, Tesla leased 4,000 sq ft of showroom space in the Bandra Kurla Complex (BKC) for ₹23.38 crore and secured managed office space near BKC in April 2025.
5. What is Tesla’s long-term strategy in India?
Tesla’s strategy focuses on building a robust retail and service infrastructure across key urban centers in India, including high-end showrooms, office spaces, and warehouses, without focusing on local manufacturing.