Tesla has gathered 600 bookings of the Model Y in India since sales commenced in mid-July. The first batch of cars, shipped from the company’s Shanghai factory, is scheduled to arrive in early September, with deliveries initially limited to Mumbai, Delhi, Pune, and Gurugram according to Bloomberg.
According to people familiar with the matter, Tesla plans to deliver between 350 and 500 units this year, well short of its original target of fully utilising its 2,500-car annual quota. The delivery schedule is being aligned with confirmed full payments and the company’s ability to service customers beyond its current four-city footprint.
High import tariffs have been a major barrier. Tesla’s entry-level Model Y is priced above Rs 60 lakh (USD 68,000), far beyond the Rs 22 lakh price band where most EV sales occur, according to JATO Dynamics. Import duties in India can rise as high as 110%, and despite Tesla’s hopes that tariffs would ease as part of trade negotiations, deteriorating US–India relations and fresh trade frictions have dimmed those prospects.
Even so, Tesla’s performance must be viewed in the context of India’s nascent luxury EV market. Just over 2,800 electric cars priced between Rs 45 lakh and Rs 70 lakh were sold in the first half of 2025, JATO data shows. While Tesla has drawn heavy footfall to its showrooms, it has yet to translate brand appeal into significant volumes — not helped by its reluctance to engage in aggressive marketing, unlike most automakers in India.
Tesla is still cautiously expanding in India, with Supercharger installations in Mumbai and Delhi already underway and plans to open a third experience centre in South India by 2026. However, Tesla faces stiff competition from BYD, which has already sold more than 1,200 units of its Sealion 7 SUV in India which is priced from around Rs 49 lakh.
The current order tally has raised fresh doubts about Tesla’s growth prospects in new markets. Globally, the carmaker delivers roughly the same number of vehicles every four hours, highlighting the scale of the gap between expectations and reality in India.