Tesla’s move into BKC sparks Mumbai’s latest real estate rivalry

The Elon Musk company’s first India showroom is set to be ‘uncomfortably’ close to the Apple store

Representational image (photo: @Huddster2/X)
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NH Business Bureau

Mumbai’s commercial real estate market has just turned up the heat with Tesla Inc. securing its first India showroom in Bandra Kurla Complex (BKC), a move that places it in close proximity to Apple Inc.’s flagship store —despite the iPhone maker’s efforts to keep certain competitors at bay.

Apple, which launched its BKC store in 2023 within Jio World Drive, had embedded a restrictive clause in its lease agreement barring several rival brands — including Tesla — from setting up shop in the same complex.

However, the Elon Musk-led electric vehicle giant has circumvented this limitation by securing a 4,003-sq. ft retail space in the adjacent Maker Maxity building. The Tesla showroom, located a mere 120-200 m from Apple BKC, is set to be India’s most expensive car showroom.

Tesla India Motor & Energy Pvt. Ltd. has locked in a five-year lease for the space, paying a hefty Rs 881 per square foot — far surpassing the Rs 738 per square foot that Apple pays for its store. The EV manufacturer has also placed a security deposit of Rs 2.11 crore and will pay Rs 35.26 lakh in monthly rent, with a 5 per cent annual escalation clause.

In comparison, other car showroom rentals in BKC range from Rs 360-400 per square foot, making Tesla’s deal a record-breaker in Mumbai’s commercial property market.

This high-stakes leasing battle underscores BKC’s status as one of India’s most sought-after business districts, where global brands vie for premium positioning. The area, known for its strategic location and world-class infrastructure, continues to attract multinational corporations, financial institutions, and luxury retail brands willing to pay top dollar for visibility and accessibility.

Real estate analytics firm Propstack recently highlighted these high-profile leases, reinforcing BKC’s reputation as India’s priciest commercial hub. “These leases underscore the immense potential of the Indian market and BKC’s importance as a hub for high-end consumption. The strategic moves by both Apple and Tesla are a testament to the intense competition for market share in India’s rapidly evolving economic landscape,” Propstack noted in a post on X, yet another Musk property.

While Mumbai’s commercial real estate market experiences periodic shifts, the intense competition for prime retail spaces in BKC signals the district’s continued dominance as a hotspot for high-end business and luxury retail. With Tesla making an assertive entry into the Indian market and Apple determined to maintain its stronghold, BKC’s commercial landscape is set to witness a fascinating corporate showdown.

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