Tesla’s much-anticipated debut in India has quickly turned into a cautionary tale for global automakers. Despite high expectations, the American EV giant has received only 600 orders since opening sales for the Model Y in mid-July 2025. This figure stands in stark contrast to Tesla’s annual target of 2,500 vehicles and is a fraction of its global hourly deliveries.
The company’s first showrooms launched in Mumbai and Delhi, with subsequent plans to deliver vehicles to Pune and Gurugram. However, lukewarm interest from Indian consumers prompted Tesla to slash its planned shipments by 80% — with only 350 to 500 cars expected to reach Indian shores this year. As the initial batch of Model Y units is shipped from Shanghai, deliveries will be limited to regions with established infrastructure, reflecting both logistical constraints and demand realities.
Industry watchers point to several factors underpinning Tesla’s subdued debut. The Model Y starts at a staggering ₹59.89 lakh (ex-showroom), significantly higher than entry-level EVs popular in India. “Most EV buyers in India spend under ₹22 lakh,” says market analyst Raghav Kapoor. “Tesla’s price, driven by import duties close to 110%, places it in a premium niche with far fewer takers.”
Comparisons to global markets underscore the challenge: Model Y is offered at ₹38.6 lakh in the United States, ₹30.5 lakh in China, and ₹46 lakh in Germany — far less than in India, where taxes and logistics add steep premiums. Tesla’s strategy banks on the allure of its brand and the growing eco-consciousness among India’s urban elite. Still, steep costs and ongoing tariff disputes have complicated the rollout. US-India negotiations to lower import duties have stalled due to trade disputes, extinguishing earlier hopes for more competitive pricing.
The electric vehicle manufacturer faces further hurdles as GST rates on luxury EVs may soon rise, increasing the price gap with local competitors. Tesla’s plans to expand its charging infrastructure and service operations are underway, with new “supercharging stations” and service centers opening across major urban hubs. Yet, industry insiders warn that unless the pricing model shifts or local assembly begins, future prospects may remain muted.
Looking ahead, Tesla’s slow start in India sends ripples through the global EV industry. The company must recalibrate its India ambitions, factoring in local market sensitivities and policy headwinds. Whether the ‘Indian Dream’ was over-ambitious or simply premature remains to be seen.
