Elon Musk-backed Tesla has faced challenges in India’s premium automobile market, selling fewer than 500 electric vehicles (EVs) in its first year of operations. The company introduced the Model Y in September 2025 and managed to retail only 450 units between September 2025 and June 2026, averaging less than 50 units per month. In comparison, BMW sold 3,433 vehicles and Mercedes-Benz retailed 1,116 units during the same period.
Industry experts attribute Tesla’s underperformance in India to factors such as its single-product strategy, premium pricing, and limited retail presence. Currently, Tesla offers only the Model Y in India, initially priced at Rs 59.89 lakh and later reduced to Rs 50.89 lakh. However, the vehicle is imported as a completely built unit (CBU), incurring high import duties that maintain its elevated prices.
Tesla’s retail network in India is limited, with just five Experience Centres across the country, unlike established luxury carmakers with extensive dealership and service networks. Despite these challenges, Tesla has been expanding its charging infrastructure, including launching North India’s first in-mall charging facility at Nexus Select CityWalk in Delhi, equipped with six 11-kW AC destination chargers.
In June, Tesla inaugurated its fifth Experience Centre in Hyderabad’s HITEC City, showcasing the 2026 Model Y Premium Rear-Wheel Drive and Model Y L to customers.
