(MENAFN- IANS) New Delhi, Sep 2 (IANS) US auto giant Tesla's entry into the Indian market fell short of expectations, as the company received just over 600 orders since opening bookings in mid-July.

This figure is significantly lower compared to Tesla's global sales where it delivers the same number of vehicles every four hours, according to multiple reports.

The company now plans to ship 350 to 500 cars to India this year, with the first shipment from its Shanghai factory expected in early September, the report said.

Tesla owner Elon Musk's fallout with US President Donald Trump and changing geopolitical realities, along with Tesla cars' higher prices, weighed down on its sales numbers, according to analysts.

The trade negotiations did not reduce import tariffs, defying expectations. Prospects for a deal have significantly decreased after Trump imposed a 50 per cent duty on Indian exports citing the country's oil trade with Moscow.

The global sales of Tesla also dropped 13 per cent last quarter, raising concerns about a second consecutive year of decline.

Import duties in India raise the cost of Tesla's entry-level Model Y to over Rs 60 lakh, nearly three times the average price of Rs 22 lakh at which most EVs are sold in the country.

Electric vehicles make up only over 5 per cent of total car sales in India. Within the high-end bracket, just 2,800 EVs priced between Rs 45 lakh and Rs 70 lakh were sold in the first half of 2025.

Tesla is now competing in a narrow slice of market, where Chinese competitor BYD has performed better. BYD sold over 1,200 units of its Sealion 7 SUV in the first half of this year despite facing tariff barriers. The ex-showroom price of the Sealion 7 starts at Rs 49 lakh, providing it a competitive advantage over its rival.

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