Elon Musk’s Tesla India Motors and Energy Pvt Ltd has secured a lease for an 8,200 square feet showroom space in Delhi’s Aerocity hospitality district. The lease term is for nine years, with a monthly rent fixed at ₹17.22 lakh, according to property documents obtained from CRE Matrix.
The showroom space is located in Aerocity, close to the Indira Gandhi International Airport. Tesla leased the premises from Oak Infrastructure Pvt Ltd at a rental rate of ₹210 per square foot. In addition to the showroom, Tesla has taken on 10 parking slots, each rented at ₹6,000 per month. The sublease deed was registered on July 30, 2025.
The agreement’s official start date is March 15, 2025, with a 120-day period allowed for Tesla to complete the showroom fit-out before rent payments begin. Rent will start from July 13, 2025. The contract features a three-year lock-in clause and includes a rent escalation of 15% every three years. Common area maintenance (CAM) charges are ₹33.5 per square foot monthly, along with a refundable CAM deposit of ₹16.48 lakh.
Tesla’s choice of Aerocity for its showroom aligns with previous reports from February 2025 indicating the company’s intent to establish a presence in this area. Media outlets have reported that the showroom is set to open on August 11, 2025, at Brookfield’s Worldmark 3 complex in Aerocity.
This lease marks a significant step in Tesla’s expansion in India, following its official market entry on July 15, 2025. The company’s first showroom in the country opened recently in Mumbai’s Bandra Kurla Complex (BKC) at Maker Maxity Mall. Documentation reveals that Tesla leased 4,000 square feet of showroom space in this area for five years at a total lease cost of ₹23.38 crore.
Beyond showrooms, Tesla India Motors and Energy Pvt Ltd has also leased nearly 51,000 square feet of office and operational space at Orchid Business Park on Sohna Road, Gurugram. This lease spans nine years and commands a starting monthly rent of ₹40.17 lakh.
Industry experts note that luxury car manufacturers typically select showroom spaces that provide direct access to major roads and proximity to clients with higher purchasing power. Key criteria for such locations include infrastructure quality, accessibility, corridor space, and clear visibility for branding and signage. Locations with corner spaces offering two-sided visibility usually demand higher rents.
Tesla’s leasing activities in prominent locations such as Mumbai’s BKC, Gurugram’s Orchid Business Park, and Delhi’s Aerocity indicate a strategic approach to developing a robust retail and operational footprint in India. These spaces facilitate customer engagement, vehicle display, service operations, and logistics management in key metropolitan regions.
Aerocity, a developing commercial and hospitality zone near the international airport, offers connectivity advantages, making it a preferred location for automobile showrooms and other businesses targeting travelers and affluent clientele. Brookfield Group’s involvement as a major property owner in Aerocity is noteworthy, as it acquired full ownership of Rostrum Realty’s stake in 2024, consolidating control over prime assets in the area.
Tesla’s entry into the Indian market follows growing demand for electric vehicles in the country. Establishing showrooms and service centers in key cities is essential to support sales and after-sales services, build brand presence, and educate consumers about EV technology.
Leasing terms such as lock-in periods, rent escalations, CAM charges, and security deposits reflect standard practices in commercial real estate agreements for premium properties in major Indian cities. These factors also impact Tesla’s operational costs and expansion planning.
Tesla’s leasing strategy in India is part of a broader global expansion plan focusing on growing EV adoption. The company’s real estate choices suggest a focus on accessibility, visibility, and proximity to key customer segments.
Image source- medium.com
