Tesla Faces Cold Reception In India With Fewer Than 600 Orders As High Import Duties Bite: Report

Tesla's long-awaited entry into India has reportedly produced modest results, with just over 600 orders since sales began in mid-July. 

The company now plans to ship 350 to 500 cars from its Shanghai plant to India in 2025, with the first batch expected to arrive in September, Bloomberg reported, citing people familiar with the matter.

Deliveries will initially cover Mumbai, Delhi, Pune, and Gurugram, based on full payments received and Tesla's limited local footprint. The original goal was to use its full 2,500-car annual quota.

High import tariffs have pushed Tesla's entry-level Model Y above ₹6 million ($68,000), compared with about ₹2.2 million, where most EV sales reportedly occur. EVs account for just over 5% of total car sales in India, and only 2,800 premium models priced between ₹4.5 million and ₹7 million were sold in the first half of 2025.

Tesla opened a showroom in New Delhi in August and is installing Superchargers in Mumbai and Delhi, with plans for a third experience center in southern India by 2026. However, the lack of aggressive marketing and the company's reliance on brand appeal have limited conversions from showroom traffic to sales.

The weak reception adds to pressure as Tesla faces slowing growth in China and the U.S, where sales fell 13% last quarter. 

The company had expected tariffs to ease over time, but U.S.-India trade tensions, including a 50% U.S. duty on Indian exports, make relief unlikely. An India-Europe trade deal that could have allowed cheaper imports from Tesla's German plant also remains stalled.

Meanwhile, Chinese rival BYD has sold more than 1,200 Sealion 7 SUVs in India this year at a starting price of ₹4.9 million, despite facing the same tariff hurdles, according to the report that cited data from auto intelligence firm JATO Dynamics.

On Stocktwits, retail sentiment for Tesla was 'bearish' amid 'normal' message volume.

Tesla's stock has declined 17% so far in 2025.

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