Tesla Leases Service Centre in Mumbai's Kurla for ₹25 Cr

Tesla, the world’s leading electric vehicle (EV) manufacturer, is making concrete moves in India. In a major step toward establishing operations in the country, Tesla has leased a 24,500 square foot space in Kurla West, Mumbai, for a service centre. This facility is located near the company’s upcoming showroom at the prestigious Bandra Kurla Complex (BKC), and the lease agreement is worth approximately ₹25 crore.

The move signals Tesla’s growing interest in India as a market for its cutting-edge EVs and shows its commitment to providing after-sales services locally — a major step forward for potential Tesla buyers.

Why Mumbai and Why Kurla?

Mumbai is India’s financial capital and a hub for high-end consumers, making it an ideal starting point for Tesla’s operations. Kurla West offers strategic advantages — it’s centrally located, accessible from key suburbs, and close to the premium Bandra Kurla Complex where Tesla is setting up its first showroom in the city.

The decision to place the service centre near the showroom ensures that customers will receive both product demonstrations and maintenance support in close proximity. This reflects Tesla’s global model of placing showrooms and service centres within a convenient range of each other.

Lease Details: Big Investment, Long-Term Plan

According to sources in the commercial real estate sector, Tesla has signed a long-term lease deal with a total commitment of around ₹25 crore for this 24,500 sq ft service facility. The space is expected to serve as a key hub for Tesla’s vehicle servicing needs in western India.

Tesla’s lease includes provisions for fit-outs, installation of servicing bays, EV charging points, and a Tesla-specific diagnostics centre. All of this suggests that Tesla is not testing the waters — it’s preparing for serious business.

Tesla’s Broader India Expansion Strategy

This is not Tesla’s only move in India. In August 2023, the company leased office space in Pune — a 5,850 sq ft property in Panchshil Business Park — to support its operations and future hiring. Tesla is also exploring Bengaluru, Karnataka, widely known as India’s tech capital, for office and service spaces.

Tesla’s expansion across these three major cities — Mumbai, Pune, and Bengaluru — points to a phased rollout of operations aimed at urban centers with high EV adoption potential.

What This Means for Tesla Customers in India

This service centre, when operational, will bring several benefits to Indian Tesla buyers:

Local Vehicle Support: No need to send vehicles abroad for repairs or maintenance.
Faster Turnaround Times: Routine servicing and diagnostics will be faster and local.
Warranty & Software Updates: Tesla will be able to offer full warranty support and over-the-air software updates in India.
Trusted Tesla Service: Customers can expect the same quality of Tesla after-sales care as offered in the U.S. and Europe.

The presence of a service centre is also a requirement for import approvals and sales permits under India’s vehicle laws — making it a foundational step before sales launch.

Why Tesla’s Entry Matters in India

India is currently the third-largest auto market in the world, and the Indian government has been promoting electric mobility through subsidies, incentives, and reduced import duties for EVs. Tesla’s entry brings international attention to the Indian EV space and could significantly boost consumer confidence.

More importantly, Tesla could shape the Indian EV landscape just as it did in North America and Europe. Its high-performance vehicles, global brand appeal, and commitment to green technology align well with India’s sustainability goals.

Manufacturing Plans: Will Tesla Build Cars in India?

While Tesla has not yet begun manufacturing in India, there have been multiple rounds of talks between Tesla executives and Indian government officials. The central government is reportedly working on a new EV policy that may reduce import duties for companies that commit to local manufacturing.

If Tesla builds a factory in India, it would not only serve local demand but could also be used as a base for exports to nearby countries in Asia and Africa. This would reduce costs significantly and support Tesla’s global supply chain.

Tesla’s Past Challenges in India

Tesla had first expressed interest in entering the Indian market as far back as 2017. However, concerns around high import duties, inadequate infrastructure, and government regulations caused delays. Tesla CEO Elon Musk also highlighted that the company couldn’t sell cars in India unless it could test and support them locally.

India’s EV infrastructure has improved in recent years, with more charging stations and growing public awareness. Combined with Tesla’s investment in real estate and potential manufacturing discussions, the timing now seems right.

Indian EV Market: Competitive and Growing

Tesla’s entry also means competition for Indian EV manufacturers such as Tata Motors, Mahindra Electric, and Ola Electric. These companies dominate the low and mid-range EV market but lack presence in the premium EV segment — a space Tesla is expected to lead.

However, other global brands like BYD, Hyundai, and BMW are also planning new EV launches in India. This makes the next few years extremely competitive and dynamic for the industry.

Potential Models for India

While Tesla has not officially confirmed which models will be sold in India, these are likely candidates:

Tesla Model 3: The most affordable Tesla, with global appeal.
Tesla Model Y: A compact SUV perfect for Indian roads and families.
Tesla Model S and Model X: High-end luxury options that could be imported in limited numbers.

Pricing will depend on import duties and whether Tesla opts for local assembly or direct imports.

Charging Infrastructure and Government Partnerships

Tesla is expected to bring its Supercharger network to India as part of its infrastructure plan. This will enable fast charging for Tesla vehicles in key metro cities. Government partnerships could ease land acquisition and speed up approvals.

States like Maharashtra, Karnataka, and Gujarat are already offering EV-friendly policies, which Tesla can leverage to build a support system that includes fast chargers, battery recycling, and smart mobility platforms.

Summary: A Turning Point for Tesla in India

Tesla’s leasing of a 24,500 sq ft service centre in Kurla West, Mumbai, is not just a real estate deal — it’s a signal of long-term investment and serious intention to operate in India. The company is laying the groundwork for a full-fledged entry into one of the world’s most exciting EV markets.

With additional facilities in Pune and soon Bengaluru, the foundation is being built step-by-step. If manufacturing starts in India in the future, Tesla could not only sell more cars but also make India a global export hub for electric vehicles.

Tesla Expands Footprint in India with New Mumbai Service Centre