High cost and limited infra slow Tesla’s India journey, while local EV brands race ahead in sales.

Current status and background of tesla

Tesla started its sales in India from July 2025. Tesla started booking Model Y in some cities of India like Mumbai and Delhi through its experience centers. According to the Tesla company, the total bookings till now have been around 600, which is a little less according to the company.

Elon Musk was not happy

Only 600 bookings were received in India, due to which Elon Musk was not happy and the shipment target has been reduced to 80% in 2025. Now a total of 350-500 cars will be sent to India, which was earlier going to be 2500 cars. This means that Tesla has not been completely successful in India.

Import and export price from India

Model Y is priced at long range RWD: ₹59.89 lakh and long range AWD: ₹67.89 lakh. The total import price to India ranges from 70% to 110% which adds to the price of Tesla Model Y and Most buyers in India choose based on value for money.

Policy and competition challenges

A tax panel has now sought approval to increase GST on luxury EVs above $46,000 from 5% to 40%, which will have a huge impact on premium brands like Tesla. Currently, the government is reducing import duty to 15% but it also includes conditions like $500 million investment and local manufacturing

Some companies of India

Some companies in India like Mahindra, Tata, BYD, Kia etc. are launching EVs in the range of 19 to 30 lakhs which are offering good range and performance. It gives better price to performance than diesel Companies like. BYD are also quickly becoming strong in India based on materials and production methods

Lack of charging network

Tesla has announced to install V4 Superchargers in four cities of India like Mumbai, Delhi, Noida, Gurugram, due to which the network coverage across the country is still very low. Range anxiety due to lack of charging points Time is a factor that determines the sale of the car

Indian road and traffic problem

Indian roads, stray animals, lack of traffic discipline determine the use of Tesla’s technology and problems like Autopilot or FSD. These things are much more important than in the US or Europe.

Tesla’s brand value

At present, Tesla has become a technologically advanced and futuristic brand. Its image is special among the people associated with the glitz of Silicon Valley. Elon Musk has an attractive personality that has stood firm despite many challenges and has attracted the attention of young technology-minded people in India.

It has become an attraction in the Indian society. Its brand halo effect starts to fade with time, mainly when the price becomes too high.

At present, Indians do not like Tesla?

Currently, Tesla is facing slow launch in India not due to brand dislike but also due to price and environmental barriers like high pricing policy instability, lack of infrastructure. Tesla’s current strategy in the currently pricey markets looks promising but is being seen due to lack of a valid budget

Tesla’s current situation and roadmap

Current situation: Bookings ~600 Shipment plans from mid-July reduced to 350–500 units by 2025 Prices ₹60–68 lakh Very high customs import duties up to 70–110% Hefty rates and possible infrastructure situation with large investments Limited charging network FSD Limited usage Competitive options Local affordable EVs like Tata Mahindra BYD Brand influence attractive but limited Only luxury segments opened so far

Prospects for Tesla in the future

Local manufacturing (Make in India) If Tesla agrees to the proposal of ₹15% import duty incentive ₹500 million investment and ensuring 50% local content (within 5 years) can lead to lower prices and easier market entry. Expanding the Supercharger network to more locations and improving the service model can make Tesla a credible option

Model diversity and price sensitivity

If good models like Model 2 are introduced in India in the near future, Tesla will be widely accepted
Tesla’s arrival has increased awareness towards EVs, due to which the government and other companies can improve infrastructure and policies