Tesla’s big entry into India isn’t going the way many expected. Since launching in July 2025, the electric vehicle giant has sold just over 100 cars nationwide, despite high hopes and years of hype.
India recently became the world’s most populous nation, with nearly 1.5 billion people. But so far, Tesla has barely made a dent in the country’s growing electric vehicle (EV) scene.
The company launched its first showroom in Mumbai in July, followed by a larger service and sales hub in Gurugram in November. Despite the efforts, sales have been sluggish.
Tesla’s weak performance comes even after India waived EV import duties earlier this year, which opened the door for foreign brands to compete in the market.
But at a price of around 5.99 million rupees (roughly $67,000) for a Model Y, the vehicles are out of reach for most Indian consumers. Luxury vehicles make up only about 1% of car sales in the country.
According to the BBC, Sharad Agarwal, Tesla’s newly appointed head in India, said that owners could save up to 2 million rupees over four years in fuel and maintenance.
He also noted that most maintenance is handled through remote software updates and that charging at home costs about a tenth of gas prices.
Still, those savings haven’t translated into sales. Tesla’s sales of just over 100 units since July represent a strikingly low figure when compared to even the premium segment.
Luxury competitors like BMW, Audi, and Mercedes-Benz have each sold around 4,000 EVs in India this year.
According to Electrek, Chinese brands now make up about a third of EV car sales in India. That’s roughly 60,000 units sold this year, making them a significant force in the country’s fast-growing EV segment.
Infrastructure and Competition Pose Big Challenges
India’s EV market is growing rapidly. EV car sales are up 57% this year, outpacing the overall auto market, which grew 13%.
But much of that growth comes from affordable local options like Tata and Mahindra, as well as electric scooters. EVs still make up only about 3% of total passenger vehicle sales.
Tesla’s infrastructure in India is also sparse. The company has just one operational Supercharger in the country, with two more listed as “coming soon” near its Gurugram location.
While home charging is possible, the country has just 25,000 public charging stations, far below what’s needed to support widespread EV adoption.
Adding to the rocky rollout, Tesla lost its head of Indian operations just before launching in Mumbai, part of a string of executive departures that likely disrupted momentum.
Growing Market, Shrinking Lead
As India’s EV sector heats up, Tesla is falling behind. Local brands like Tata and Mahindra are leading the affordable segment, while BYD and other Chinese carmakers are expanding fast with cheaper, well-equipped models.
Premium players like Mercedes-Benz, BMW, and Audi are also finding more buyers. The demand clearly exists, just not for Tesla.
Buyers seem to prefer brands with local credibility and better support. Tesla, by contrast, hasn’t adjusted to what Indian consumers actually want.
Some say the company could still gain ground by building cars locally or offering more affordable options.
But Elon Musk hasn’t shown much interest in setting up manufacturing in India, even with government incentives on the table.
Global Headwinds Add Pressure
According to Reuters, Tesla is also under pressure in other major markets, not just India.
In Europe, the company’s sales dropped by 48.5% in October compared to the same month last year, even as overall EV sales in the region rose by 26%. For the year, Tesla’s European sales are down about 30%.
In China, Tesla’s deliveries fell to a three-year low in October, down 35.8%. Through October, the company’s total sales in China were down 8.4% year to date.
These numbers come as Chinese competitors like BYD and newcomers such as Xiaomi increase pressure with broader lineups and lower prices.
In the U.S., Tesla had a brief boost in September from buyers rushing to claim a tax credit, but sales fell again in October by 24%.
Big Brand, Small Results
While it’s still early in Tesla’s India rollout, the results so far have been disappointing. In one of the world’s most promising EV markets, Tesla has managed to sell just over 100 cars, a number that falls flat compared to what rivals are doing.
Despite some analysts calling the move strategic, Tesla has made little effort to align its approach with India’s economic and consumer realities.
By sticking to an import-only strategy, keeping prices sky-high, and dragging its feet on infrastructure, the company has signaled more brand posturing than serious market engagement.
Elon Musk’s focus on other priorities, from robotics to global AI ventures, seems to have left the India strategy running on autopilot. In a market driven by cost-conscious consumers and rapid EV adoption, Tesla’s approach feels misjudged and out of sync.
Tesla has not responded to media requests for comment on its sales performance in India.