Tesla’s long-anticipated entry into India is off to a sluggish start. Since launching sales in mid-July, the company has received just over 600 bookings—well below its internal target of 2,500 vehicles for 2025, according to Bloomberg. The muted response highlights the challenges of selling premium electric vehicles (EVs) in a price-sensitive market dominated by more affordable alternatives.
A Price Barrier Too High for Most Buyers
At the center of Tesla’s struggle is cost. The Model Y, Tesla’s entry-level offering in India, carries a sticker price of more than ₹60 lakh (around C$94,000/US$70,000). That is nearly triple the average price of an EV in India, which hovers around ₹22 lakh (C$35,000/US$25,000).
The steep difference is largely driven by India’s near-100% import duty on foreign vehicles, a tax that effectively doubles the cost of Tesla’s Shanghai-built cars.
The company had initially planned to fully utilize its annual import quota of 2,500 vehicles, but with demand far below expectations, Tesla now expects to ship just 350 to 500 units this year. The first batch of cars is expected to arrive from China in early September, with deliveries limited to Mumbai, Delhi, Pune, and Gurugram.
Why the Low Numbers Make Sense
While the figure of 600 orders may seem underwhelming for a company that sells that many cars globally in less than half a day, the number is not surprising given the circumstances. India’s luxury EV market remains small, with only about 2,800 units sold in Tesla’s price bracket during the first half of 2025.
In this context, Tesla’s tally is in line with the realities of India’s developing EV marketplace. Consumers are cost-conscious, and with local infrastructure still catching up—charging stations are sparse outside major cities—premium models face an uphill climb.
Despite the slow start, Tesla is pressing ahead with measured investments in India. The company has installed Superchargers in Mumbai and Delhi and plans to open a third experience center in South India next year. These moves suggest Tesla is treating India as a long-term play rather than a short-term sales driver.
