Tesla gets about 600 orders since India launch

Tesla gets about 600 orders since India launch

Tesla Inc.'s foray into the Indian market has thus far been met with underwhelming results, as the electric vehicle (EV) maker has received orders for just over 600 cars since its mid-July launch [1]. This number is significantly lower than the company's own expectations and falls short of its global delivery rate, which was around 600 cars every four hours during the first half of the year.

Tesla has planned to ship between 350 to 500 cars to India this year, with the first batch expected to arrive from Shanghai in early September. Deliveries will initially be restricted to the cities of Mumbai, Delhi, Pune, and Gurugram [1]. The shipment size is determined by the full payments received for the cars and Tesla's capability to deliver outside its current four-city footprint.

The company's ambitious plans to utilize its full 2,500-car annual quota in India this year have been thwarted by several challenges. High import tariffs, which can reach up to 110%, have priced Tesla's entry-level Model Y out of reach for the majority of Indian consumers. The base variant of the Model Y is priced at over 6 million rupees ($68,000), well above the 2.2 million rupee mark where most EV sales occur in India [1].

The tepid reception in India underscores the broader challenges Tesla faces in pursuing new growth markets, as it grapples with declining sales in its two largest markets, China and the US. Sales fell 13% last quarter, and the company is under pressure to avoid a second consecutive year of decline [1].

Tesla had hoped that India's import tariffs would be lowered over time through trade negotiations with the US, but recent developments, such as the US imposing 50% tariffs on Indian exports due to oil imports, have dashed those hopes [1]. Additionally, the India-Europe free trade agreement, which could have allowed Tesla to bring in cheaper shipments from its German factory, remains unfinalized [1].

Despite the challenges, Tesla is cautiously expanding in India. The company is installing Superchargers in Mumbai and Delhi and plans to open a third experience center in a South Indian city by 2026 [1]. Meanwhile, Chinese rival BYD Co. has successfully carved out a foothold in India, selling more than 1,200 Sealion 7 SUVs in the first half of 2025 at a starting price of about 4.9 million rupees [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-09-02/tesla-gets-about-600-orders-since-india-launch-fueling-global-growth-doubt