Tesla EV cars: Here’s what it may cost to rent a car showroom space in Delhi and Mumbai
Tesla has reportedly selected showroom locations in New Delhi and Mumbai. Here's what it may cost to rent a car showroom space in the two cities
Elon Musk's automotive company Tesla has reportedly selected locations for setting up two showrooms in New Delhi and Mumbai spread across an area of around 5000 sq ft, said a Reuters report quoting sources.
Tesla has shortlisted space to lease in the Aerocity area near New Delhi's Indira Gandhi International Airport (IGI) for a showroom, Reuters cited two people familiar with the discussions, who declined to be named as the matter is private.
For Mumbai, Tesla has reportedly chosen space in the business and retail hub of Bandra Kurla Complex (BKC) near the airport.
Both the Delhi and Mumbai showrooms will be around 5,000 square feet (464.52 square metres) in size, the above-mentioned source said.
Prime Minister Narendra Modi met Tesla CEO Elon Musk in the United States last week and discussed matters including space, mobility and technology.
The dates for the inauguration of the outlets have not yet been decided, but Tesla plans "to sell imported EVs in India ... these deals are for showrooms, not service centres," one of the sources cited in the report said, adding that Tesla will operate the outlets.
Sources familiar with the matter, cited in a Reuters report, said Tesla has been looking for showroom spaces in India since late last year in order to start sales in the world's third biggest auto market, after pausing market entry plans in 2022.
The company also posted job ads this week for 13 mid-level roles in India, including some store and customer relationship managers.
All about car showroom rentals
Car showroom rentals primarily depend on the location, experts told HT.com
Real estate experts said that rents of car showrooms depend on the location.
Rentals for car showroom space in BKC range from ₹700 to 800 sq ft on carpet depending on the floor, building, project and location, they said.
Showroom rentals in Delhi's Aerocity vary from ₹500 to ₹600 per sq ft on carpet depending on location, they said.
“In the Connaught Place area it may be anything above ₹600 per sq ft. Car showrooms generally have the ability to pay higher rentals, often a premium of 25% to 30%. They often end up setting a benchmark for higher commercial rentals in an area,” they said.
Real estate major DLF has leased retail space to Porsche in Capitol Point in Connaught Place and to Kia in DLF Cyber Hub, Gurugram.
This is how luxury car companies decide on real estate space
Experts said that luxury car manufacturers usually look for showroom space with direct access to the main road.
These often come up in parts of the city that have easy access to high net worth clients. “The showroom should be located in an area where cars can be easily delivered. It should have better infrastructure in terms of accessibility. Large corridors, clean pavements and a design that supports better visibility,” they said.
It should be noted that several global auto brands, including Mercedes and BMW, have showrooms located along the Golf Course Road in Gurugram. This is an area where high-net-worth individuals reside. Sources said that car showroom rentals in this location are upwards of ₹600 per sq ft.
Another real estate expert said that the location of luxury car showrooms is decided based on the location, residential clusters where the rich and famous reside are preferred, not to mention the presence of top corporate offices in that location.
Ultra-luxury residential projects such as DLF Camellias, Aralias, and Magnolias are all located along Golf Course Road.
The rentals of luxury car showrooms depend on the space available to display signages, advertisements and branding. “A corner showroom space that has two-side visibility will command higher rentals,” a real estate expert told HT.com