Karmactive Team
Tesla has received just over 600 orders for its Model Y since launching in India in mid-July, falling short of the company’s internal expectations. The electric vehicle maker now plans to ship between 350 and 500 cars to India this year, with the first batch expected to arrive from Shanghai in early September.
Deliveries will initially be limited to four cities – Mumbai, Delhi, Pune, and Gurugram – where Tesla has established its first physical presence. The company has already opened showrooms in Mumbai’s Bandra Kurla Complex in July and Delhi’s Aerocity in August.
The Model Y, priced at around 60 lakh rupees (approximately $70,000), faces challenges in the Indian market due to high import tariffs. This price reflects nearly 100 percent import duties on completely built-up vehicles, making the car almost double the price compared to other markets.
“The size of shipments is based on the full payments Tesla has received for the cars, as well as the company’s ability to deliver outside the four cities where it has a physical presence,” reports indicated.
Tesla is targeting a niche segment in India, where electric vehicles account for just 4-5% of overall car sales. The premium EV market is even smaller, with only about 2,800 EVs priced above 40-70 lakh rupees sold in the first half of 2025.
The American automaker faces competition from established luxury brands like BMW and Mercedes-Benz, as well as newer EV entrants like BYD, whose Sealion 7 reportedly sold over 1,200 units in the first half of 2025.
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Despite these challenges, Tesla is investing in charging infrastructure to support its entry into the Indian market. The company has installed V4 Superchargers at locations in Mumbai and Delhi, with plans to expand to more cities. At its Mumbai BKC location, Tesla offers DC fast charging at Rs 24 per kWh and AC destination charging at Rs 14 per kWh. A Tesla Supercharger can add up to 267 km of range to a Model Y in just 15 minutes.
The Model Y is available in two variants in India – a standard Rear-Wheel Drive model with a claimed range of 500 km, and a Long Range Rear-Wheel Drive with 622 km range (based on WLTP standards). Both have a top speed of 201 kmph, with the standard model accelerating from 0-100 kmph in 5.9 seconds and the Long Range version in 5.6 seconds.
Tesla’s entry into India comes at a challenging time for the company, which has seen global sales decline by 13% in the most recent quarter. The company has adopted a strategy of selling imported vehicles in India despite the high duties, as it grapples with excess capacity in its global factories.
Indian officials remain in talks with the US administration about potentially lowering import duties under a bilateral trade deal, which could make Tesla vehicles more affordable in the future. The EV maker has long lobbied for lower import duties on its cars.
Maharashtra Chief Minister Devendra Fadnavis expressed hope for deeper investment, stating: “In the future, we wish to see R&D and manufacturing done in India, and I am sure at an appropriate stage, Tesla will think about it.”
The company plans to continue expanding its presence in India, with a focus on building after-sales service centers in Mumbai and Delhi, as well as investing in delivery hubs, workplaces, and logistics to support the growing Tesla community in the country.
