Tesla’s long-anticipated entry into India delivered a sobering result in 2025. Despite months of buildup and the opening of its first retail locations, Tesla reportedly sold just 225 vehicles across the entire year.
The weak annual total comes after Tesla opened its first showrooms in Mumbai and New Delhi in mid-2025. Early demand proved modest, with just over 100 vehicles delivered in the initial months. Momentum then faded further, as October sales slipped to around 40 units—down from roughly 64 deliveries recorded in September, the company’s first full month of sales in the country.
Tesla had originally hoped to sell around 2,500 vehicles in its first year, but internal expectations were later revised down to a few hundred units.
At the core of Tesla’s struggles is pricing. India imposes import duties of up to 100 percent on fully built vehicles shipped from overseas, dramatically inflating costs for automakers without local production. For Tesla, this meant importing the Model Y from its Shanghai factory at a price that pushed the entry cost well into the luxury category and nearly three times higher than the average electric vehicle sold in India.
Infrastructure constraints have also limited sales. Outside major metropolitan areas, India’s public charging network remains small, and Tesla’s own Supercharger presence is currently confined to two cities, Mumbai and New Delhi. For buyers accustomed to dense fuel networks and readily available service centres, concerns around charging access and long-term support likely weigh heavily on purchasing decisions.
Even so, Tesla does not appear to be treating India as a short-term volume play. Company executives have repeatedly described the market as a strategic, long-term opportunity rather than an immediate growth engine. The focus so far has been on establishing brand presence, learning the regulatory landscape, and targeting affluent early adopters.
Tesla has also signaled plans to open an additional Experience Centres in the country and expand its Supercharging footprint.
For now, however, the numbers don’t lie. Without local manufacturing or significant policy changes that bring vehicle prices closer to the mainstream market, Tesla’s growth in India is likely to remain limited.
