After a major see-saw period, Tesla Inc finally launched its operations in India in the previous months. Maiden vehicle chosen by Tesla for India was Model Y, a sleek and aerodynamically shaped crossover SUV and it came with a rather steep sticker price starting from Rs 59.89 lakh (Ex-sh) owing to a string of taxes.
As per a recent report by Bloomberg, Tesla has received lukewarm response from Indian market with just 600 bookings. This is as opposed to the company’s optimistic expectations of filling in the yearly quota of 2,500 units soon after the bookings commenced. This underwhelming response fuels Tesla’s global growth doubts further. Let’s take a closer look.
Tesla Model Y Gets Lukewarm Response In India
There seem to be a combination of factors that might have led to this deficit in enthusiasm from Indian SUV buyers. For starters, Tesla Model Y is being shipped into the country from Tesla’s Chinese facility, attracting import duties and other tariffs. Thus the sticker price starts from Rs 59.89 lakh (Ex-sh) for Long Range RWD and Rs 67.89 lakh (Ex-sh) for Long Range AWD variants.
Also, Tesla is currently operating two showrooms across India. The first one was inaugurated in Mumbai, Maharashtra (July 2025) and the second in Delhi (August). Tesla is set to commence initial deliveries in select areas like Mumbai, Pune, Delhi and Gurugram. There is not a lot of clarity as to how many of those 600 bookings have been converted into full payments.
The first shipment from Shanghai will reportedly arrive in September in India. Depending on the full-payment conversions from these 600 bookings, Tesla will now ship around 350 to 500 Tesla Model Ys from China to India. India is not the only market where Tesla is facing an underwhelming response. In fact, Tesla’s global sales and credibility have been on a decline as well.
Future Potential
Elon Musk led Tesla Inc banked hard on the potential trade deal between India and USA, which seems to be a distant dream today as US President Donald Trump has has snowballed tariffs on India. That said, Tesla still has hopes from the Europe India free trade deal where the company can ship vehicles from its German plant to India once it comes into effect.
The Asian subcontinent has emerged as the world’s third largest automobile market and the increased consumption within the country’s population is a huge draw for automakers like Tesla looking to make a mark here. In the coming months, Tesla might expand its limited presence in India and launch a more affordable Model Y too. Both of these might boost sales for the brand.
