Tesla ’s long-awaited arrival in India was supposed to reshape the electric vehicle (EV) market. Instead, just weeks after its launch, the American EV giant finds itself grappling with subdued demand, missed targets, and growing uncertainty in a market where price sensitivity remains king.
Since sales began on July 15, Tesla has managed to secure just over 600 orders for its Model Y, well below its internal target of 2,500 units for the year. Reports suggest that Tesla now plans to ship between 350 and 500 vehicles in 2025, with the first batch expected to arrive from Shanghai in September.
Deliveries will initially be limited to Mumbai, Delhi, Pune, and Gurugram—cities where Tesla has showrooms or experience centers.
Tesla had entered India with hopes of benefiting from import duty concessions under a potential India-US trade deal. Instead, the opposite occurred. Washington imposed a 50% tariff on Indian goods in retaliation over New Delhi’s Russian oil purchases, effectively killing any chance of Tesla receiving relief on its already high import duties.
In a market where luxury EVs already face stiff competition, this blow has made Tesla’s vehicles even harder to position competitively.
Tesla’s Growing Pains Go Global
The slow start in India reflects Tesla’s broader global challenges. With softening demand in major markets and excess production capacity, the company is under pressure to find new growth avenues. India was supposed to be a key opportunity, but so far, the debut has not lived up to the hype.
Tesla has nonetheless been laying the groundwork for its long-term play in India:
- Showrooms: The first Tesla showroom opened at Bandra Kurla Complex, Mumbai, on July 15, followed by a second Experience Centre at Aerocity, Delhi, on August 11.
- Charging Network: Tesla launched its first Supercharging station on August 4 at One BKC, Mumbai, featuring V4 Superchargers (250kW DC) priced at Rs 24/kWh, along with AC Destination Chargers at Rs 14/kWh. A similar setup is available at the Delhi showroom.
The Model Y: Specs and Pricing
Tesla’s first offering for India, the Model Y, comes in two variants:
- Model Y RWD:
- 60kWh LFP battery
- Range: 500 km (WLTP)
- 0–100 km/h in 5.9 seconds
- Top speed: 201 km/h
- Supercharging: 238 km in 15 minutes
- Price: Rs 59.89 lakh (ex-showroom, Delhi)
- Model Y LR RWD:
- Larger battery
- Range: 622 km
- 0–100 km/h in 5.6 seconds
- Supercharging: 267 km in 15 minutes
- Price: Rs 67.89 lakh (ex-showroom, Delhi)
Customers can book with a Rs 22,220 token payment, followed by a non-refundable Rs 3 lakh within a week. Optional paint schemes range from Rs 95,000 to Rs 1.85 lakh.
Tesla has also introduced its self-driving package priced at Rs 6 lakh, though many features will remain inactive until regulators approve them.
Delivery Timeline
According to Tesla’s official website:
- Model Y RWD deliveries are expected in Q3 2025.
- Model Y LR RWD deliveries will begin in Q4 2025.
Tesla’s slow start reveals the challenges of cracking the Indian EV market:
- Price sensitivity remains a key hurdle.
- Policy unpredictability complicates Tesla’s ability to plan long term.
- Competition from more affordable EVs by Indian automakers is intensifying.
Still, with its charging network and early presence in premium hubs, Tesla may be setting the stage for future success—provided it can weather the initial turbulence.