TESLA has taken a significant step toward launching electric vehicle sales in India by leasing a 24,565 sq ft warehouse in Kurla West, Mumbai, underlining an infrastructure-first strategy that prioritises service readiness and customer delivery. The facility, set in the Lodha Logistics Park, is expected to commence operations in June 2025 as the EV maker gears up for full-scale market entry .
The warehouse, leased for five years with a monthly rent of ₹37.53 lakh (₹153 per square foot) and a security deposit of ₹2.25 crore, suggests a conservative yet deliberate approach. While it does not include paint or body work, it will serve as Tesla’s primary service centre and distribution hub in MumbaiThis move closely follows Tesla’s other Indian real estate deals, including showroom space in the Bandra Kurla Complex (BKC) and Delhi’s Aerocity, as well as an engineering office in Pune—forming the foundation of a multi-tier rollout to support its product launch
However, manufacturing a domestic EV facility remains off the table for now. According to Union Heavy Industries Minister H.D. Kumaraswamy, Tesla has shown no interest in local assembly or production under India’s EV incentive scheme—at least in this phase. With high import duties persisting, Tesla will initially import fully built units, likely leading to premium pricing.Strategically, the Mumbai warehouse is well-positioned. The Kurla location sits within one of the city’s main logistics belts, offering seamless access to upscale catchment zones. This will help streamline vehicle deliveries and after-sales service across the city.
Industry analysts see this infrastructure push—adding logistics, showrooms, and service centres—as a strong signal of Tesla preparing to begin deliveries by late 2025, once regulatory homologation for its Model 3 and Model Y is complete .While this rollout strategy supports premium brand positioning, sustained pricing pressure and demand growth may depend on eventual localisation. With India aiming to reduce EV tariffs for domestic production, Tesla may revisit manufacturing decisions, particularly if volumes justify the investment .
In sum, Tesla’s Mumbai warehouse marks a clear sign that the company is building its support infrastructure ahead of launch. The success of this measured, service-led market entry will hinge on government policy, consumer response, and timely delivery for a premium EV offering in India’s competitive automotive space.
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