Tesla’s much-anticipated entry into India appears to be off to a disappointing start.
Despite generating excitement and securing more than 600 bookings, the company has sold just over 100 cars since July.
High taxes, slow EV adoption and India’s still-growing charging ecosystem are proving to be major roadblocks; even as premium rivals like BMW, BYD and Mercedes-Benz report healthy momentum in the electric segment.
Auto industry experts remain puzzled by Tesla’s weak performance, especially since its launch coincided with the festive season and recent GST-related tax revisions. Yet, demand has not translated into deliveries.
Reports suggest that while Tesla collected over 600 bookings by mid-September, only a fraction materialised into actual sales.
Analysts point to India’s steep import duties, slow shift toward electric mobility, and the high upfront pricing of Tesla models as key deterrents for buyers.
However, Tesla India head Sharad Agarwal believes the long-term economics still favour the brand.
Speaking to the BBC, he said customers could recover up to ₹20 lakh in fuel and maintenance savings over four years; roughly one-third the cost of a Model Y in India.
He noted that most servicing is handled via software updates, lowering maintenance costs, and that home charging costs are “one-tenth” of petrol expenses.
Despite its challenges, Tesla does have some advantages.
India’s EV market remains small, making up less than 3% of total passenger vehicle sales, and charging infrastructure is still limited to around 25,000 stations nationwide.
But Tesla offers convenient at-home charging, adding up to 70 km of range per hour, and is rapidly expanding its own charging network, including superchargers capable of delivering 170 miles in just 15 minutes.
Whether these strengths can overcome India’s economic and policy hurdles remains to be seen; but for now, Tesla’s India debut is far from the blockbuster launch many had expected.
