New Delhi, Sep 2
US auto giant Tesla's entry into the Indian market fell short of expectations, as the company received just over 600 orders since opening bookings in mid-July.
This figure is significantly lower compared to Tesla's global sales where it delivers the same number of vehicles every four hours, according to multiple reports.
The company now plans to ship 350 to 500 cars to India this year, with the first shipment from its Shanghai factory expected in early September, the report said.
Tesla owner Elon Musk's fallout with US President Donald Trump and changing geopolitical realities, along with Tesla cars' higher prices, weighed down on its sales numbers, according to analysts.
The trade negotiations did not reduce import tariffs, defying expectations. Prospects for a deal have significantly decreased after Trump imposed a 50 per cent duty on Indian exports citing the country's oil trade with Moscow.
The global sales of Tesla also dropped 13 per cent last quarter, raising concerns about a second consecutive year of decline.
Import duties in India raise the cost of Tesla’s entry-level Model Y to over Rs 60 lakh, nearly three times the average price of Rs 22 lakh at which most EVs are sold in the country.
Electric vehicles make up only over 5 per cent of total car sales in India. Within the high-end bracket, just 2,800 EVs priced between Rs 45 lakh and Rs 70 lakh were sold in the first half of 2025.
Tesla is now competing in a narrow slice of market, where Chinese competitor BYD has performed better. BYD sold over 1,200 units of its Sealion 7 SUV in the first half of this year despite facing tariff barriers. The ex-showroom price of the Sealion 7 starts at Rs 49 lakh, providing it a competitive advantage over its rival.
— IANS
Reader Comments
The import duties are killing the market! If the government really wants to promote EVs, they should reduce these taxes. Meanwhile, BYD seems to have understood the Indian market better with their pricing strategy.
Elon Musk's political drama with Trump isn't helping either. Indian consumers are watching global politics and it affects brand perception. Maybe Tesla should focus more on local manufacturing to bring prices down.
As an expat living in Delhi, I was excited about Tesla coming to India. But the pricing is just unrealistic for most people. Even wealthy Indians think twice before spending that much on a car when maintenance and charging are still concerns.
The numbers speak for themselves - only 2800 EVs sold in that price bracket in 6 months. Tesla is competing for a tiny slice of an already small market. They need to rethink their India strategy completely.
Respectfully, Tesla made a classic mistake of applying global strategy without local adaptation. Indian consumers are value-conscious even in premium segments. The BYD comparison shows what happens when you get pricing right.
Maybe this is a wake-up call for Tesla. Instead of just shipping cars from China, they should invest in local manufacturing like other global brands have done. That would
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.