According to people familiar with the situation who spoke with HT Digital, Elon Musk’s Tesla has held preliminary discussions for showroom space in high streets, mall locations, and commercial districts in New Delhi and Mumbai with several real estate developers, including the biggest player DLF and Maker Maxity. 

Musk is anticipated to make a major announcement regarding a major investment in the third-largest automobile market in the world when he visits New Delhi the following week to meet Prime Minister Narendra Modi. 

“They require between 3,000 and 4,000 square feet of showroom space, which they need soon. Rental prices will vary depending on the location,” one of the individuals remarked, requesting anonymity. 

DLF did not reply to HT Digital’s questions. 

It should be noted here that DLF has leased retail space to Porsche in Capitol Point in Connaught Place and to Kia in DLF Cyber Hub, Gurugram. Vehicle dealership rentals are location-specific, according to real estate experts. “In the Connaught Place area, it may be anything above Rs 600 per sq ft. Car showrooms generally can pay higher rentals, often a premium of 25% to 30%. “They frequently become the standard for more expensive commercial rentals in a given area,” they stated. 

Moreover, rumors are circulating that Tesla is reportedly looking for showroom space in the Maker Maxity commercial development in Mumbai’s Bandra-Kurla Complex. 

Tesla and MakerMaxity have received emails from HT Digital. 

How do high-end automakers choose their parking lots? 

According to experts, showroom locations with easy access to the main road are typically sought after by luxury car manufacturers. 

These are frequently found in areas of the city that are easily accessible to wealthy customers. “The showroom ought to be situated somewhere where automobile deliveries are convenient. Better accessibility infrastructure ought to be present. Large hallways, spotless sidewalks, and a layout that enhances visibility were mentioned. 

Several international car brands have showrooms in Gurugram along Golf Course Road. Mercedes and BMW are a couple of these. High net-worth individuals live in this area. According to sources, Maserati is anticipated to open a showroom along this stretch. According to them, the expense of renting a car showroom at this location can reach Rs 600 per square foot. 

According to a different real estate expert, residential clusters home to the wealthy and well-known are the first choice for luxury car showroom spots alongside those with prestigious corporate offices. 

Aralias, Magnolias, and DLF Camellias are a few of the lavish residential developments along Golf Course Road. 

Renting out a luxury car showroom is based on how much room is available for branding, signs, and ads. A real estate expert states that a corner showroom space with two-sided visibility will bring in more money for rentals. 

According to a recent Reuters report, Tesla is making right-hand drive vehicles at its Berlin facility with plans to export them to India later this year. The report claims that Tesla executives started actively looking for locations in March. They have already had initial discussions about it with real estate developers.   

According to the statement, the ideal locations will likely be at possible malls and high street locations. Tesla has declared that it wants to begin building as soon as possible, with an opening date of 2024 likely.