Tesla Inc.’s long-awaited entry into India has been underwhelming with only 600 bookings received so far, Bloomberg reported. That’s how many cars the Elon Musk-led company sells every four hours globally.
The sales figures have fallen short of the company’s own expectations, people familiar with the matter told Bloomberg on the condition of anonymity while discussing confidential matters. Tesla had originally aimed to utilise its full quota of 2,500 cars this year.
The company now plans to ship 350-500 to India this year. The first batch is slated to land from China’s Shanghai in early September, the people said. Deliveries will be limited to Mumbai, Delhi, Pune and Gurugram. The size of the shipment is based on full payments received for the cars, as well as Tesla’s ability to deliver out of the four cities it currently has a showroom in.
Tesla didn’t immediately respond to Bloomberg’s requests for a comment.
The Model 3 maker had long-avoided an entry into the world’s third-largest automotive market due to the near-100% tariffs India imposes on car imports. Still, Tesla broke cover in early July with a Model Y priced in excess of ₹60 lakh, ex-showroom. That, in a country where the average price of an electric car is ₹22 lakh.
{{/usCountry}}The Model 3 maker had long-avoided an entry into the world’s third-largest automotive market due to the near-100% tariffs India imposes on car imports. Still, Tesla broke cover in early July with a Model Y priced in excess of ₹60 lakh, ex-showroom. That, in a country where the average price of an electric car is ₹22 lakh.
{{/usCountry}}The tepid reception in India also underscores the headwinds Tesla faces while chasing new markets, as challenges mount in China and the US—its two largest markets. Sales fell 13% in April-June, and the company is under pressure to avoid a second straight year of declines.
According to Bloomberg, Tesla had bet that India’s import tax on cars would be lowered after a trade deal with the US, but exactly the opposite has happened. US President Donald Trump, with whom Musk shared a once-cozy now-strained relationship, has slapped a 50% tariff on India over New Delhi’s imports of Russian oil.
To be sure, India’s luxury electric car market is still nascent. According to JATO Dynamics data quoted by Bloomberg, a little over 2,800 electric cars priced between ₹45 lakh and ₹70 lakh were sold in the first half of 2025. Still, BYD Co. of China—Tesla’s primary rival globally subject to similar tariffs in India—has sold 10,000 luxury electric cars since 2021.
To be sure, Tesla is cautiously expanding in India, installing superchargers in Mumbai and Delhi. A third experience centre is planned for a city in South India, Bloomberg reported.