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In a significant step towards establishing its footprint in India, electric vehicle (EV) giant Tesla has secured a new commercial space in Mumbai’s Kurla West to set up a vehicle service center. The move marks the company’s fourth major real estate deal in India, further signaling its growing operational readiness and long-term intent in one of the world’s fastest-growing automobile markets.

The latest space, spanning 24,500 sq ft, is located in the Lodha Industrial and Logistics Park developed by Macrotech Developers. Tesla India Motor & Energy, the local arm of the US-based automaker, signed a five-year lease agreement for the premises. According to documents accessed via realty data analytics firm CRE Matrix, the lease was registered in May, with the rental term beginning from April 20. A rent-free period of one month and ten days has been included, with payments starting June 1.

The monthly rent for the facility is set at Rs 37.53 lakh, with total payments crossing Rs 24 crore over the full lease period. The contract also includes a standard annual escalation of 5 per cent and CAM (Common Area Maintenance) charges of Rs 10 per sq ft, subject to similar yearly hikes.

This lease deal is Tesla’s second major transaction in just two months, following its acquisition of a 30-seater office near the Bandra Kurla Complex (BKC), a record-setting lease at Rs 881 per sq ft. The Kurla facility joins the company’s expanding Indian footprint, which also includes its engineering hub in Pune and registered corporate office in Bengaluru.

Tesla’s latest move comes at a time when its India strategy appears to be gaining momentum, particularly in the wake of Prime Minister Narendra Modi’s meeting with Elon Musk during his visit to the US earlier this year. The Indian government’s revised EV policies, aimed at attracting foreign players and easing manufacturing setup, have also played a role in encouraging Tesla’s entry.

While Tesla has not yet announced the location of a full-scale manufacturing facility in India, recent developments suggest that groundwork is being laid. The leasing of a service center in Mumbai reinforces the company’s intent to build a local ecosystem that encompasses service, logistics, and possibly, future production capabilities.