Tesla’s long-awaited return to India has stumbled out of the gate. The electric vehicle company finally started supplying its Model Y sedan in September 2025, nine years after Elon Musk first promised to enter the Indian market. However, the launch hasn’t gone as planned. Tesla delivered just 60 vehicles in its first full month, far below what the company had projected.
Tesla’s India launch stumbled in September 2025, delivering just 60 vehicles despite nine years of promises.
The numbers tell a sobering story. Tesla secured about 600 orders during the six weeks before launch. The company then revised its 2025 target to just 350 to 500 vehicles, which represents only 14 to 20 percent of its original volume projections. Meanwhile, competitors like BYD shipped 541 units in September alone. Even luxury brands like BMW and Mercedes outperformed Tesla’s September numbers.
Several factors have hindered Tesla’s entry into India. The Model Y faces steep import duties that make it considerably more expensive than comparable domestic options. Local manufacturers like Tata and Mahindra already offer multiple EV models at lower prices, with their performance actually competing with Tesla’s Model Y capabilities. Furthermore, Tesla chose to import complete vehicles rather than manufacture locally, keeping costs high. India ranks as the fourth-largest automotive market globally, yet Tesla’s pricing strategy has failed to capitalize on this massive opportunity.
The company’s leadership structure has also shifted. Prashanth Menon, who oversaw India operations, resigned in May 2025. Tesla’s CFO Vaibhav Taneja now manages India operations directly, with local board directors handling policy, sales, and human resources. The company hasn’t appointed a dedicated India head since Menon’s departure.
Tesla committed to building its own charging infrastructure with plans for 16 Superchargers in both Mumbai and Delhi. This represents a major investment, as India had zero Tesla Superchargers before the company’s arrival. However, most local EV manufacturers partner with existing charging providers rather than building their own networks.
Industry analysts note that strong pre-launch excitement hasn’t translated into actual sales. The Model Y doesn’t clearly outperform domestic alternatives on price, features, or performance. As Tesla maneuvers through these challenges, the company’s India strategy faces critical questions about whether it can compete in a market that’s already established strong domestic EV options.