When Tesla Inc. finally entered India this summer, it was meant to be a defining moment for the world’s most celebrated electric vehicle maker. The company had spent years negotiating, lobbying, and waiting for the right moment to plant its flag in one of the world’s fastest-growing automotive markets. Yet, just weeks after opening its order books, Tesla’s ambitions appear to be running low on charge.
According to people familiar with the matter, Tesla has received just over 600 orders since launching sales in mid-July. Understandably, that number that feels strikingly modest when placed against its global scale, given that’s the volume of cars Tesla typically delivers every four hours. Now, the company expects to ship between 350 and 500 cars to India this year, with the first batch arriving from Shanghai in September. Deliveries will be limited to four cities — Mumbai, Delhi, Pune, and Gurugram — where Tesla has managed to establish a physical footprint.
The subdued reception underscores a larger reality: India is proving far harder to crack than Tesla imagined. High tariffs, a deeply price-sensitive consumer base, and shifting geopolitical winds have combined to dampen the spark Tesla had hoped to ignite.
A Market Out of Reach
At the heart of Tesla’s struggles lies the question of affordability. Import duties on fully built vehicles entering India run as high as 110 percent, pushing the price of Tesla’s entry-level Model Y to well over 60 lakhs. By comparison, most electric cars sold in India that are comparable to the Model Y hover around the 22 lakh rupee mark.
That places Tesla far outside the reach of mainstream EV buyers, in a market where electric vehicles still account for just 5 percent of overall passenger vehicle sales. The mismatch is stark: while Tesla is a mass-market brand in the United States, in India it risks becoming little more than a luxury badge.
Tesla’s faith that tariffs would be lowered over time through trade negotiations with Washington has not materialized. Instead, President Donald Trump’s decision to impose 50 percent tariffs on Indian exports in response to its Russian oil purchases has hardened the economic standoff. Even a potential India-Europe free trade agreement, which could have allowed Tesla to ship more affordable models from its German factory, remains elusive.
Brand Power Meets Local Realities
Tesla had counted on its brand aura and Elon Musk’s global profile to do the heavy lifting. In markets from California to Shanghai, Tesla has thrived with minimal advertising, letting its cars and its chief executive’s larger-than-life persona sell themselves. In India, however, foot traffic at Tesla’s gleaming showrooms has not translated into orders.
Local automakers, well attuned to the Indian consumer, rely heavily on advertising blitzes and promotional campaigns. Tesla’s more restrained approach has left it looking distant and exclusive, just as rivals are pushing aggressively to grab market share.
Chinese giant BYD, which recently overtook Tesla as the world’s largest EV seller, has already found more traction in India. Its Sealion 7 SUV, priced at 4.9 million rupees, sold more than 1,200 units in the first half of this year despite facing the same tariff structure. That comparison has only sharpened questions about Tesla’s strategy.
A Symbolic Launch
To be sure, Tesla’s 600 orders are not insignificant in the rarefied upper tier of India’s EV market. Between January and June, just 2,800 cars priced between 4.5 million and 7 million rupees were sold nationwide. Seen through that lens, Tesla’s entry has secured a visible, if niche, foothold.
And despite the underwhelming numbers, Tesla is still making cautious moves to expand. The company has begun installing Superchargers in Mumbai and Delhi, and is planning a third experience center in a southern city next year. These investments suggest Tesla sees its current presence less as a commercial breakthrough and more as a symbolic planting of roots for the future.
Global Shadows
The muted debut in India also comes at a difficult moment globally. Tesla’s sales fell 13 percent in the last quarter, and the company is fighting to avoid a second consecutive year of decline. Its core markets in China and the United States are facing intensifying competition, regulatory scrutiny, and consumer fatigue.
India had been held out as one of the few remaining untapped frontiers. But if Tesla cannot adapt to the structural realities of this market, its Indian venture may remain a boutique operation rather than a growth engine.
The irony is that India is one of the few countries where electric vehicle adoption is still poised to grow dramatically, backed by government incentives and surging infrastructure investments. Local manufacturers such as Tata Motors are already seeing strong demand for mid-priced EVs, proving that the appetite is real, just not at Tesla’s price point.
For now, Tesla’s Indian dream is stalled at the charging station. Whether it can catalyse into life will depend not only on policy changes, but also on Tesla’s willingness to tailor its strategy to a market that plays by very different rules.
