Tesla’s India launch off to slow start

Mumbai: Tesla’s entry into India is off to a slow start. According to a Bloomberg report, the American EV maker has secured just over 600 orders for its Model Y SUV so far; well below the company’s internal expectations. For perspective, Tesla sold a similar number of Model Y units globally in just four hours for the first half of 2025.

The company plans to bring 350–500 units of the SUV to India in 2025, Bloomberg said. These vehicles are being produced at Tesla’s Shanghai gigafactory, with the first shipment expected to arrive by September. Deliveries will begin in Mumbai, Pune, Delhi and Gurugram, while bookings are open nationwide. Tesla had earlier set a target of 2,500 cars annually for the Indian market. Pricing remains a key hurdle.

Import duties have nearly doubled the Model Y’s price in India compared to the U.S. The Long Range rear-wheel-drive variant costs Rs 67.89 lakh in India, while the same model retails for $37,490 (about Rs 33.02 lakh) in the U.S. Bloomberg noted that CEO Elon Musk’s earlier bet on lower tariffs through U.S.-India trade talks has not materialised, with U.S. President Donald Trump recently imposing a 50% tariff on Indian imports.

Tesla’s weak start also reflects the challenges of India’s premium EV segment. JATO data cited by Bloomberg shows that only 2,800 electric cars priced above Rs 40.5 lakh were sold in the country in the first half of 2025. Against that backdrop, Tesla’s 600 bookings may not be as poor as they appear.

Globally, the company is facing headwinds as well. Tesla’s sales dropped 13% in the most recent quarter, Bloomberg reported. Unlike rivals who rely heavily on advertising in India, Tesla has so far avoided aggressive marketing, choosing instead to depend on its brand pull. The company has begun setting up retail operations, opening two experience centres in Mumbai and Delhi, with more planned.