Tesla Expands India Entry with Initial Shipments and Premium EV Strategy

• Tesla receives only 600 orders in India, far below its 2,500 car target for the year.
• The first shipment of 350-500 cars will arrive from Shanghai in early September.
• High import duties and steep pricing limit the brand’s reach in India’s EV market.

Tesla’s much anticipated debut in India is off to a slow start. Since opening bookings in mid-July, the electric vehicle (EV) giant has secured just over 600 confirmed orders, significantly lower than its initial goal of selling 2,500 cars this year.

Due to the modest response, Tesla now plans to ship only 350 to 500 vehicles to India in 2025. The first batch of cars is expected to arrive from the company’s Shanghai plant in early September. Deliveries will initially be limited to Mumbai, Delhi, Pune, and Gurugram, where buyers have already made full payments and Tesla has some infrastructure in place.

A key reason for the lower than expected sales is the high import duties in India, which can go up to 110%. This makes Tesla’s Model Y cost more than Rs 60 lakh ($68,000), far above the average price of most electric cars sold in India, which is around Rs 22 lakh.

India’s EV market is still growing, with electric cars making up just over 5% of total car sales. In the first half of 2025, only about 2,800 EVs priced between Rs 45 lakh and Rs 70 lakh were sold, highlighting the small size of the ultra-premium segment Tesla is targeting.

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Geopolitical tensions and trade issues, including high tariffs on Indian exports to the US and delays in the India-Europe trade deal, have further complicated Tesla’s efforts to gain a foothold in the country.

Tesla’s slow start in India underscores the challenges of expanding into new markets, especially where affordability and policy are major hurdles.