Credits: Tesla India / X
Despite all the excitement and Elon Musk's typical hype, Tesla's entrance into India has been an utter flop. Since mid-July, Musk's company has received just 600 orders about the same amount that Tesla sells in four hours globally.
First intending to sell 2,500 cars in India this year, Tesla has downgraded their estimates. The first shipment will arrive in September, but deliveries will be limited to a few cities (Mumbai, Delhi, Pune, Gurugram) where Tesla has some showrooms.
The real reason? Ridiculous prices and insane import duties. With import taxes of over 110%, Tesla's base model car costs over $68,000, a completely absurd price for the Indian market, where most EV sales are priced between $26,000-$30,000.
Musk hoped that trade talks between the US and India would help ease some of these tariffs, but now, given increased geopolitical tensions and (Trump's protectionist policies), that hope is all but gone!
Meanwhile, Chinese competitors aren't waiting around: BYD sold over 1,200 Sealion SUVs in the first half of 2025 alone, and prices are much more reasonable even with import duties.
Meanwhile, Tesla is busy installing a few charging stations in Mumbai and Delhi and promising a new showroom in southern India by 2026. This seems more of a PR stunt than a real expansion plan.
The fact is, Elon Musk severely underestimated India and its market. He tried to push this overpriced, inaccessible product and assumed his brand alone would do the selling. Spoiler alert: it is not.
References:
https://www.cnbctv18.com/auto/tesla-falls-short-in-india-with-just-600-orders-since-launch-in-july-19662763.htm
