Tesla’s highly anticipated launch in India in mid-2025 has experienced a tepid start, with reports indicating the company has received just over 600 orders for its Model Y since opening sales in July. This figure falls significantly short of Tesla’s initial target of 2,500 vehicles for the year and is reflective of the challenges the company faces amidst the Indian electric vehicle market landscape.
Pricing and Market Dynamics
Tesla launched the Model Y in India with pricing starting at approximately ₹59.89 lakh (roughly $70,000), primarily due to India’s near-100% import tariffs on fully built electric vehicles. Compared to the average electric vehicle price in India, which is around ₹22 lakh, Tesla’s premium pricing has limited its accessibility to the broader Indian consumer base.
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Limited Delivery and Showroom Network
The initial deliveries are restricted to four major metropolitan areas where Tesla has established a retail footprint: Mumbai, Delhi, Pune, and Gurugram. The first batch of Model Y vehicles arrived from Tesla’s Shanghai factory in early September 2025, and the company plans to ship between 350 and 500 vehicles to India over the course of the year based on confirmed payments and logistical capabilities.
Contributing Factors to Slower Sales
The slower-than-expected sales trajectory is attributed to a combination of high costs, limited physical presence, and infrastructural challenges. Additionally, India’s EV charging infrastructure is still developing, creating hesitancy among potential buyers. General economic factors and competition from local and international EV brands, including China’s BYD which has gained strong footing in the Indian premium EV segment, also play roles.
Tesla’s Broader Market Context and Stock Impact
Globally, Tesla’s vehicle deliveries have declined approximately 13% year-on-year in the first half of 2025, contrasting with increasing overall EV demand worldwide. The company’s stock price has followed suit, dropping about 22-30% in 2025, influenced by softened sales, market competition, and broader economic factors.
Expansion and Future Outlook
Despite early hurdles, Tesla is actively expanding its supercharger network in Mumbai and Delhi and plans additional experience centres in South India next year. Tesla’s market entry underscores the complexities of launching luxury EVs in emerging markets marked by high tariffs and limited infrastructure. Long-term success in India may depend on strategies such as local manufacturing or tariff negotiations to reduce costs and enhance market competitiveness.
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Conclusion
Tesla’s initial India sales performance highlights the challenges inherent in entering a price-sensitive and infrastructure-limited market. With just over 600 bookings against ambitious projections, Tesla is reassessing its growth plans while gradually building its presence. How Tesla navigates these barriers will be critical to its expansion in India’s fast-evolving electric vehicle sector and investor confidence in its global prospects.