Tesla sells fewer than 500 cars in first year of India operations, highlighting the challenges the Elon Musk-led electric vehicle maker faces in India’s premium EV market. Industry data shows Tesla retailed only 450 vehicles between September 2025 and June 2026, well behind established luxury rivals despite growing interest in electric mobility.
Tesla sells fewer than 500 cars in first year of India operations
Elon Musk-backed Tesla has sold fewer than 500 electric vehicles (EVs) in India during its first year of operations, underscoring the challenges of gaining a foothold in the country’s premium automobile market despite the company’s strong global brand appeal, according to industry data.
The EV maker entered India on July 15, 2025, and began customer deliveries of the Model Y in September. Between September 2025 and June 2026, Tesla retailed 450 vehicles, averaging fewer than 50 units a month, according to industry data.
BMW and Mercedes-Benz outperform Tesla in India
The sales were significantly lower than those of established German luxury carmakers. During the same period, BMW sold 3,433 vehicles, while Mercedes-Benz retailed 1,116 units, the data showed.
Many industry experts attributed Tesla’s subdued performance to its single-product strategy, premium pricing and limited retail footprint in the country.
High import duties and Model Y pricing remain key challenges
Tesla currently sells only the Model Y in India. The electric SUV was launched at an introductory ex-showroom price of Rs 59.89 lakh, which was reduced to Rs 50.89 lakh in May. However, the vehicle continues to be imported as a completely built unit (CBU), attracting high import duties that keep prices elevated.
The company’s retail presence also remains limited, with just five Experience Centres across the country, while established luxury carmakers have built extensive dealership and service networks over the years.
Tesla expands experience centres and charging network
Earlier, Tesla expanded its charging infrastructure by launching North India’s first in-mall charging facility at Nexus Select CityWalk in Delhi. The location is equipped with six 11-kW AC destination chargers, allowing owners to charge their vehicles while shopping or dining.
In June, the company also inaugurated its fifth Experience Centre in Hyderabad’s HITEC City, where customers can view the new 2026 Model Y Premium Rear-Wheel Drive and Model Y L.
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