Tesla's India launch underwhelms with around 600 orders since July
What's the story
Tesla's much-anticipated entry into the Indian market has been underwhelming, with only a little over 600 cars booked since mid-July. The number is far lower than the company's expectations and is on par with what it delivered globally every four hours in H1 2025. Despite its brand power, Tesla has struggled to penetrate India's price-sensitive EV market.
Delivery strategy
Tesla aims to deliver between 350 and 500 cars
Tesla intends to deliver between 350 and 500 cars in India this year, with the first batch arriving from Shanghai in early September. Deliveries will be restricted to Mumbai, Delhi, Pune, and Gurugram for now. The number of deliveries is based on full payments received for the cars and Tesla's ability to deliver outside of the cities it currently has a showroom in.
Market challenges
Model Y's price tag makes it unappealing in India
Tesla's entry-level model in India costs over ₹60 lakh ($68,000) due to high import tariffs, way above the ₹22 lakh mark where most EVs are sold. This effectively puts the base variant of Model Y out of reach for most Indian consumers. The lukewarm response highlights the hurdles Tesla faces while trying to tap new growth markets amid rising challenges in China and the US.
Tariff expectations
Trade talks with US could help reduce import tariffs
Tesla had hoped that India's import tariffs, which can go as high as 110%, would be reduced over time through trade talks with the US. However, this seems less likely after Trump imposed 50% tariffs on Indian exports as a "punishment" for purchasing Russian oil. The India-Europe free trade agreement involving preferred duties, which would have allowed cheaper shipments from its German factory, is still pending.