Tesla's India Launch Fails to Impress with Just 600 Orders Amid Global Growth Concerns

Tesla has received around 600 orders in India since its mid-July launch, falling short of expectations. The company plans to ship 350-500 cars to India this year, with the first batch arriving in September. Tesla's high prices due to import tariffs and the company's public fallout with the US President have contributed to the slow response.

Tesla Inc.'s entry into the Indian market has been met with tepid response, with the company receiving just over 600 orders since its mid-July launch. This number falls short of Tesla's own expectations, according to sources familiar with the matter [1].

The company had aimed to utilize its full 2,500-car annual quota in India this year, but deliveries are now expected to range between 350 to 500 cars, with the first batch slated to arrive from Shanghai in early September. Deliveries will initially be limited to the cities of Mumbai, Delhi, Pune, and Gurugram, based on the full payments received and Tesla's ability to deliver outside its current footprint [1].

The slow start can be attributed to several factors. High import tariffs have priced Tesla's entry-level model, the Model Y, north of 6 million rupees ($68,000), making it unaffordable for the vast majority of Indian consumers. In contrast, most EV sales in India occur at prices below 2.2 million rupees, according to data from auto intelligence firm JATO Dynamics [1].

Tesla's public fallout with U.S. President Donald Trump has also played a role. Musk's endorsement of Trump during the 2024 presidential campaign and his subsequent appointment as co-lead of the Department of Government Efficiency (DOGE) in Trump's administration are now seen as factors that may have unraveled the company's plans in India. The deterioration of bilateral trade relations between the U.S. and India, exacerbated by Trump's tariffs on Indian exports, has made it increasingly difficult for Tesla to penetrate the Indian market [1, 2].

Despite these challenges, Tesla is cautiously expanding its presence in India. The company is installing Superchargers in Mumbai and Delhi and planning a third experience center in a South Indian city as part of its 2026 growth plans [1]. Meanwhile, Chinese rival BYD Co. has managed to carve out a foothold in the Indian market, selling more than 1,200 Sealion 7 SUVs in the first half of the year at a starting price of about 4.9 million rupees [1].

As Tesla faces headwinds in India, it also grapples with challenges in its two largest markets, China and the U.S. Sales fell 13% last quarter, and the company is under pressure to avoid a second consecutive year of decline [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-09-02/tesla-gets-about-600-orders-since-india-launch-fueling-global-growth-doubt
[2] https://www.aol.com/why-donald-trump-elon-musk-194953314.html