The Gurgaon facility is Tesla's second retail location in India, following the recent establishment of its Mumbai showroom.
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The Gurgaon facility is Tesla's second retail location in India, following the recent establishment of its Mumbai showroom.
Elon Musk-owned electric vehicle (EV) maker Tesla has secured a retail and service facility in Gurgaon, marking another milestone in its Indian market expansion journey, ET Auto reported on Tuesday. The company has committed to a substantial 33,475 square feet space at Orchid Business Park on Sohna Road, with monthly lease payments of ₹40 lakh.
The Gurgaon facility is Tesla's second retail location in India, following the recent establishment of its Mumbai showroom. The positioning in the National Capital Region demonstrates the company's commitment to establishing a strong presence in key Indian metropolitan areas.
Data analytics firm CRE Matrix documentation reveals that Tesla has entered into a nine-year lease agreement, officially commencing July 15. The company has provided a security deposit of ₹2.41 crore to secure the expansive facility.
The rental economics showcase interesting market dynamics between the two cities. While Tesla's Mumbai location commands ₹881 per square foot in monthly rent at Maker Maxity's 2 North Avenue ground floor, the Gurgaon facility costs significantly less at ₹120 per square foot. However, the Gurgaon space offers approximately ten times more area than the Mumbai location.
Tesla has been systematically evaluating opportunities within India's rapidly expanding automotive sector. The company's expansion efforts have intensified following productive discussions between CEO Elon Musk and Prime Minister Narendra Modi earlier this year.
Beyond retail operations, Tesla has initiated preliminary site evaluation for potential manufacturing facilities. Maharashtra has emerged as the primary candidate location for the company's proposed EV manufacturing plant, according to reports.
As part of its Indian market strategy, reports suggest that "Musk has sought lower tariffs on imported EVs" to facilitate the company's entry into the homegrown market.
Tesla's expansion is in line with with India's position as one of the world's fastest-growing automobile markets. The company's dual approach of establishing retail presence while exploring manufacturing capabilities positions it to capitalise on the increasing demand for EVs in the region.
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