Why is Tesla struggling to sell cars in India?

Tesla is facing slow sales in India primarily due to the high cost of its imported Model Y, inflated by significant customs duties, making it less competitive in the price-sensitive market.

What are Tesla's plans for the Indian market?

Tesla is focusing on building an EV ecosystem with charging infrastructure and offering discounts on imported models, while awaiting potential trade agreement benefits to lower duties.

How do Tesla's India sales compare to BMW and BYD?

Unlike Tesla's slow start, BMW and BYD have seen substantial growth in their EV sales in India, driven by locally assembled models and a wider range of price points.

Home / Business and Economy / Tesla's India Debut Stalls: Luxury EVs Face Slow Demand

Tesla's India Debut Stalls: Luxury EVs Face Slow Demand

15 Jan

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Summary

Tesla struggles with slow sales of imported Model Y SUVs.
High import duties inflate prices, challenging affordability.
Competitors BMW and BYD see significant EV sales growth.

Tesla's India Debut Stalls: Luxury EVs Face Slow Demand

Tesla's initial foray into India, beginning in mid-2025, has been met with underwhelming sales figures, revealing the difficulties of introducing premium imported electric vehicles into a value-conscious market. The company is reportedly struggling to sell a substantial portion of its initial Model Y import batch, leading to quiet discounts being offered to clear inventory. This slow start highlights a significant disconnect between Tesla's global brand recognition and the realities of the Indian automotive landscape.

A primary obstacle for Tesla in India is pricing, with imported vehicles subject to tariffs of up to 110%, significantly increasing their cost. The Model Y, its sole offering, faces stiff competition from rivals like BMW and BYD, who offer locally assembled or more competitively priced alternatives with richer feature sets. While Tesla's global sales have also seen a slowdown, allowing BYD to surpass it as the world's largest EV seller in 2025, its India strategy appears increasingly challenged.