Tesla’s long-awaited debut in India has gotten off to a slow start, as the company’s premium pricing and limited local presence have kept early sales low. Despite the buzz surrounding its arrival, the Model Y has struggled to find traction in a market dominated by price-sensitive buyers and steep import duties that inflate costs.
Since opening its first showrooms in Mumbai and New Delhi in mid-2025, Tesla has registered just over 100 vehicle deliveries, with October sales slipping to 40 units — a 37.5% month-over-month decline over the 64 deliveries that took place in their first month in India in September. The company had hoped to reach 2,500 sales this year but now expects to ship only 350 to 500 vehicles.
At the heart of Tesla’s challenge is India’s aggressive import tax regime. Vehicles shipped fully built from abroad are subject to duties of up to 100%, effectively doubling the cost of each Model Y imported from Tesla’s Shanghai factory. The result is an entry price of around ₹60 lakh (C$94,000/US$70,000), nearly three times higher than the average electric vehicle (EV) sold in India, which typically retails for about ₹22 lakh.
The pricing places Tesla squarely in the luxury EV segment — a niche market that accounted for fewer than 3,000 sales overall in the first half of 2025. While global brands like Mercedes-Benz and BMW also compete in this space, Tesla’s dependence on imports leaves it particularly vulnerable to price comparisons against more affordable, locally built EVs.
Infrastructure limitations have further dampened enthusiasm. Outside of major metros, India’s public charging network remains sparse, and Tesla’s own Supercharger coverage is still limited to Mumbai and Delhi. The company plans to open a third experience center in South India next year and expand its charging footprint, but for now, range anxiety and lack of service accessibility remain barriers for potential buyers.
Despite the slow start, Tesla appears to be playing a long game. Executives have framed India as a strategic future market rather than an immediate sales driver, focusing first on brand awareness and establishing a presence among affluent early adopters. Until policy reforms bring prices closer to the mainstream market, Tesla’s growth in India is likely to remain slow and steady rather than electric.
