Tesla’s finally opened its first showroom in India in 2025, but the electric car maker isn’t getting the red-carpet treatment it’s used to. The company entered quietly, without the big celebrations seen at its launches in other countries. Tesla’s Model Y costs about 60 lakh rupees, putting it far above what most Indian buyers can afford.
India’s electric vehicle market is growing fast. It’s worth $54.41 billion in 2025 and should reach $110.7 billion by 2029. Right now, electric vehicles make up about 4% of all cars sold in India. The government wants that number to hit 30% by 2030. CareEdge Advisory predicts EV market share will exceed 7% by fiscal year 2028, showing steady progress toward the government’s ambitious target.
Tesla faces tough competition from companies already selling in India. Tata Motors controls over 53% of the electric passenger car market. JSW MG Motor India has grown quickly too, jumping from less than 1% market share in 2020 to 30% by June 2025. These companies sell electric cars for 19 to 30 lakh rupees, much cheaper than Tesla’s Model Y.
Tata Motors dominates with 53% market share while JSW MG Motor surged to 30%, both undercutting Tesla’s premium pricing significantly.
Price isn’t Tesla’s only problem. Indian companies offer better value. Mahindra’s BE 6 can drive 557 kilometers on one charge, beating Tesla’s 500 kilometers. BYD’s eMAX7 goes 530 kilometers, while Tata’s Harrier EV performs similarly. Indian buyers care about getting the most for their money, making Tesla’s high price hard to justify.
Tesla doesn’t make cars in India, which keeps its costs high. Local manufacturers get government benefits, like no customs duty on lithium-ion battery parts. The production-linked incentives for domestic manufacturing have increased by over 700%, giving local companies a significant advantage. Tesla must import everything, making its cars more expensive.
The company’s also struggling globally. Its European market share dropped to 1.2% in May 2025, and it’s seen three straight quarters of falling sales worldwide.
India’s charging network isn’t ready for mass electric vehicle adoption either. The country has 26,367 public charging stations but needs 1.32 million by 2030. That means adding 400,000 stations every year.
Two-wheelers lead India’s EV sales at over 50%, while three-wheelers account for 36%. Passenger cars are growing but remain a smaller segment. Tesla’s entering a market where cheaper options already exist and buyers won’t pay extra for the brand name alone.