Tesla in India: Only 600 Orders? 9 Points

Delhi / New York

1. Tesla’s Underwhelming Entry into India

   • Tesla Inc., led by Elon Musk, officially launched sales in India in mid-July 2025.

   • Despite high expectations, Tesla India bookings stand at just 600+ orders, far below the company’s global delivery pace.

2. Limited Deliveries in 2025

   • Tesla plans to ship 350–500 cars to India this year, with the first batch arriving from Shanghai in September.

   • Deliveries will be restricted to Mumbai, Delhi, Pune, and Gurugram, where Tesla currently has showrooms and a physical presence.

3. Falling Short of Original Targets

   • Tesla had initially aimed to use its 2,500-car annual quota in India for 2025.

   • The revised plan reflects weak demand and Tesla’s cautious approach in the Indian EV market.

4. High Import Tariffs Driving Up Prices

   • India’s import duties of up to 110% make Tesla cars prohibitively expensive.

   • The entry-level Tesla Model Y price in India exceeds ₹6 million ($68,000), far above the ₹2.2 million average where most EVs are sold.

5. Challenges in India’s EV Market

   • India is a price-sensitive market, with EVs making up just 5% of total car sales.

   • Tesla’s reliance on brand value and minimal marketing has not translated into sales, unlike rivals who rely on aggressive advertising strategies.

6. Global and Political Headwinds

   • Tesla’s global sales dropped 13% last quarter, raising concerns about slowing growth in key markets like the US and China.

   • Hopes for reduced tariffs through US-India trade negotiations have dimmed after political tensions and tariff wars under Trump.

   • Even the India-Europe Free Trade Agreement, which could have lowered costs via Tesla’s German factory, is still pending.

7. Competition from Chinese EV Maker BYD

   • BYD has gained traction in India, selling 1,200 Sealion 7 SUVs in the first half of 2025.

   • Starting at ₹4.9 million, BYD’s pricing strategy undercuts Tesla while facing the same import tax barriers.

8. Tesla’s Future Plans in India

   • Despite weak initial sales, Tesla is investing in Superchargers in Mumbai and Delhi.

   • A third experience center is planned in South India as part of its 2026 expansion strategy.

9. Luxury EV Market Size in India

   • In the first half of 2025, only 2,800 premium EVs priced between ₹4.5M–₹7M were sold in India.

   • Tesla’s 600+ orders, while small, represent a significant share of this niche high-end EV segment.