Tesla's entry into the Indian market has seen sluggish sales, with just over 100 vehicles sold since opening its first showroom in Mumbai in July 2025. Despite high expectations in the world's most populous country, the company faces challenges from high prices and limited infrastructure. A new larger center in Gurugram aims to boost presence amid growing EV competition.
Tesla has long sought to enter India's automotive market, delayed by protectionist policies until March 2025, when the country waived EV import duties. This allowed foreign brands like Tesla to import vehicles. In July 2025, Tesla opened its first showroom, an "Experience Center" in Mumbai, India's financial capital and most populous city. Deliveries of the Model Y, the sole offering, began in September after order books opened in July.
Dealership data indicates Tesla has sold just over 100 cars in the four months since, a low figure for a nation of nearly 1.5 billion people. By mid-September, over 600 orders were placed, but only a small fraction converted to sales. The Model Y starts at 5,989,000 rupees, equivalent to about $67,000 USD, placing it in the luxury segment where only 1% of India's auto sales occur.
India's EV market is expanding, with 2 million electric vehicles sold this year, though mostly scooters. Electric passenger cars total around 160,000 units, or 3% of the market, growing 57% year-over-year against 13% for the overall auto sector. Competitors fare better: Chinese EVs account for about 60,000 sales, and German luxury brands like Mercedes, BMW, and Audi have sold around 4,000 units.
Infrastructure remains sparse, with one Supercharger in Mumbai and plans for two more in Gurugram. This week, Tesla opened a larger "Tesla Center" in Gurugram, near Delhi, combining showroom, charging, and service facilities. "Their [sales] numbers are low by any standard," said Hormazd Sorabjee, editor of Autocar India, but added, "They have just put their foot in the door in India. And they have good potential to increase sales here in the time to come."
Tesla's challenges include executive departures, such as the head of Indian operations before the Mumbai launch, amid a global sales decline.
