New Delhi. Elon Musk's Tesla entered the Indian auto market last year i.e. in 2025. At one time, the possibility of setting up a local manufacturing plant was also raised. However, Tesla's introduction in the Indian market in less than a year has made it clear that it is very difficult to sell imported premium cars here.
According to a Bloomberg report, Tesla is facing difficulty in selling about one-third of the initial consignment imported into India last year. Even after four months of dispatching about 300 units of Model Y, about 100 vehicles are still lying unsold. To reduce the stock of these vehicles, the company is giving a discount of up to Rs 2 lakh on select Model Y variants. However, Tesla has not made any official announcement regarding this.
Model Y spoiled the game
Tesla's strategy in India currently rests on only one car, Model Y. Its starting price in India is around Rs 60 lakh, which makes it one of the most expensive electric vehicles in its segment. According to Bloomberg, around 600 bookings were received for Model Y in India, but a large number of them have not yet converted into deliveries. Official registration data shows that in the entire year 2025, Tesla has registered only 227 vehicles in India.
Custom duty increased prices
Tesla's biggest challenge is price. In India, custom duty on CBU units can be up to 110%, which more than doubles the price of vehicles. Tesla thought that its brand appeal would offset these costs, but so far this strategy has not proven effective. Indian EV buyers, even in the premium segment, are extremely price and value conscious. This is also a big reason for Tesla not getting customers.
did not get the trust of customers
Apart from the price, Tesla's limited physical presence is also a problem. The visibility of the brand is low due to limited showrooms and lack of local manufacturing. The service network is also limited, due to which customers remain a little worried about maintenance and ownership. The company is trying, but it will take time to build trust.
performance against the market
The interesting thing is that Tesla's slowness is visible at a time when India's EV market is growing at a fast pace. Total EV retail sales are expected to grow 16% to 22.7 lakh units in 2025, while sales of electric passenger cars are expected to jump 77% to 1.76 lakh units. Companies like Tata Motors and JSW MG Motor are ahead in the market on the basis of affordable prices and better local offerings. At the same time, Tesla failed to establish its footing.
future plan
Tesla is trying to build a long-term ecosystem in India, which includes home charging, charging points in malls and hotels, and superchargers. Besides, the company will also have to win the trust of customers regarding the cost of ownership. In the future, if the custom duty is reduced or Tesla starts local production, then the company's position will be strengthened.
(Ram Mohan Mishra)
