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Tesla Inc.’s long-anticipated arrival in India has not lived up to expectations, with only 600 reservations recorded so far, according to Bloomberg. This number represents the amount of vehicles that the company led by Elon Musk sells globally every four hours. The sales have not met the firm’s expectations, as revealed by individuals familiar with the issue who spoke to Bloomberg anonymously about sensitive information. Initially, Tesla aimed to use its complete quota of 2,500 cars this year. Now, it intends to send 350-500 cars to India this year. The first shipment is expected to arrive from Shanghai, China, in early September, according to the sources. Deliveries will be limited to the cities of Mumbai, Delhi, Pune, and Gurugram. The size of the shipment is determined by the full payments received for the cars and Tesla’s capability to deliver from the four cities where it currently has showrooms. Tesla did not respond promptly to Bloomberg’s request for a statement.
The company that makes the Model 3 had stayed away from the world’s third-largest car market for a long time due to the nearly 100% tariffs that India places on car imports. However, Tesla made its move in early July with a Model Y priced at over Rs 60 lakh, ex-showroom. This is significant in a country where the average cost of an electric vehicle is Rs 22 lakh. The lukewarm response from India also highlights the difficulties Tesla encounters as it seeks to enter new markets, especially as challenges increase in China and the US – its two main markets. Sales dropped by 13% between April and June, and the company is facing pressure to avoid a second consecutive year of declines. Bloomberg reports that Tesla had hoped the import tax on vehicles in India would decrease after a trade agreement with the US, but the situation turned out differently. US President Donald Trump, with whom Musk once had a friendly relationship that has now soured, imposed a 50% tariff on India due to New Delhi's imports of Russian oil.
It is important to note that India’s high-end electric vehicle market is still developing. As mentioned by Bloomberg, data from JATO Dynamics shows that just over 2,800 electric cars costing between Rs 45 lakh and Rs 70 lakh were sold in the first half of 2025. However, BYD Co. from China—Tesla’s main competitor worldwide, facing similar tariffs in India—has sold 10,000 luxury electric vehicles since 2021. Tesla is slowly growing in India, setting up superchargers in Mumbai and Delhi. A third experience center is also planned for a city in Southern India, according to Bloomberg.
