Tesla’s much-anticipated entry into India has received a lukewarm response. Since launching sales in mid-July, the company has secured just over 600 orders, falling well short of its internal expectations, Bloomberg reported, citing sources familiar with the matter.
The Elon Musk-led EV maker now plans to ship between 350 and 500 cars to India this year. The first batch is expected to arrive from Tesla’s Shanghai plant in early September.
Deliveries will initially be restricted to Mumbai, Delhi, Pune, and Gurugram, Bloomberg added. Shipment sizes are being finalized based on full advance payments received and Tesla’s ability to deliver outside its current network.
Tesla officially rolled out its Model Y in India in July at around $70,000 (₹58 lakh) — a price inflated by India’s high import tariffs on electric vehicles. For years, the automaker has lobbied for tariff cuts, but with no breakthrough, it is testing the waters with imports.
The company is targeting a niche luxury segment, given EVs make up only 4% of India’s total car sales. Deliveries are scheduled to begin in the third quarter.
However, Tesla faces unique hurdles in India: inadequate EV charging infrastructure, poor lane discipline, pothole-ridden roads, and even stray cattle on highways — challenges that make EV adoption difficult even in urban areas.
Globally, Tesla is grappling with excess capacity in its factories and slowing demand. Its India venture, while symbolically significant, appears to have gotten off to a cautious and underwhelming start.
