Tesla Inc.'s highly awaited entry in India has so far attracted a relatively low response, with merely 600 bookings received, says Bloomberg. Worldwide, that is half the number of vehicles the Elon Musk-owned company sells in four hours.
The sales have failed to meet Tesla's internal estimates, people close to the situation informed Bloomberg, who spoke on the condition of anonymity because the information was sensitive. Originally, Tesla had planned to sell its entire allocation of 2,500 vehicles in India this year.
The firm now aims to deliver 350-500 cars to the country in 2025. The initial batch is set to arrive in early September from Shanghai, China, the sources added. Deliveries will be limited to Mumbai, Delhi, Pune, and Gurugram, subject to full payment received and the availability of Tesla to distribute cars from the four current showrooms.
Tesla did not have an immediate comment on the requests of Bloomberg.
The Model 3 maker had so far avoided India, complaining of almost 100% taxes on the import of cars. But Tesla introduced the Model Y in early July at a price higher than ₹60 lakh ex-showroom—well beyond India's average electric vehicle price of ₹22 lakh.
The lukewarm welcome underscores the challenges confronting Tesla as it attempts to move into fresh markets while being squeezed in its two biggest markets, China and the US. Worldwide sales dropped 13% in the April-June quarter, and the company is being pushed to not see a second straight year of sagging revenue.
Bloomberg noted that Tesla had hoped India’s import duties would be reduced following a trade deal with the US. Instead, tariffs have increased. US President Donald Trump, whose relationship with Musk has shifted from cordial to strained, recently imposed a 50% tariff on India in response to New Delhi’s purchases of Russian oil.
India's market for luxury electric vehicles continues to be small but expanding. JATO Dynamics data cited by Bloomberg show that only slightly more than 2,800 electric vehicles costing ₹45 lakh to ₹70 lakh were sold during the first half of 2025. For contrast, China's BYD Co.—Tesla's dominant global rival—has retailed 10,000 Indian luxury EVs since 2021 despite the imposition of similar tariffs.
Tesla is going slow in India, establishing superchargers in Delhi and Mumbai. A third experience center is also to be established in a South Indian city, Bloomberg wrote.
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