Tesla's sales in India dropped significantly in October, with the electric vehicle maker selling only 40 units. This represents a 37.5% decline from the 64 units sold in September. The company's cumulative sales in India now stand at 104 vehicles since its market entry earlier this year.^{[1][2][3][4][5][6]} Industry experts point to supply constraints, high pricing, and a limited dealership network as key factors for the slow sales.^[1] ### High Import Duties Drive Up Prices High import duties in India make Tesla vehicles considerably more expensive for local buyers. Tesla currently imports its vehicles as Completely Built Units (CBUs), which attract import duties ranging from 70% to 100%.^{[1][7][8][9][10][11]} This taxation can make a Tesla car 100% more expensive in India compared to its price in other global markets.^[9][10] For example, the Tesla Model Y, currently the only model offered in India, is priced at approximately ₹59.89 lakh for the standard rear-wheel drive version and ₹67.89 lakh for the long-range model (ex-showroom). In ^[4][6]contrast, the same Model Y starts around $44,990 (approximately ₹38 lakh) in the United States. Tesla^[8] has actively lobbied the Indian government for a reduction in these tariffs to make its vehicles more accessible. ### ^[7][9]India's New EV Policy and Tesla's Manufacturing Dilemma The Indian government introduced a new electric vehicle policy to attract global manufacturers. This policy offers a reduced import duty of 15% on up to 40,000 vehicles over five years. Companies must commit to investing at least $500 million in local manufacturing within three years and achieve 25% domestic value addition, increasing to 50% within five years. Tesl^{[12][13][10][14][15]}a has been exploring setting up a manufacturing plant in India, with Maharashtra emerging as a potential location. Howev^[16][17]er, reports are conflicting. Some suggest Tesla has no immediate plans for local manufacturing, citing global overcapacity at its existing factories. Elon ^[18][19][20]Musk, Tesla CEO, had previously stated plans to produce more affordable electric cars in India by 2025 or later, utilizing existing production lines. Elon^[21] Musk confirmed in April 2025 that he plans to visit India later this year. This announcement followed discussions with Prime Minister Narendra Modi, where they explored collaboration in technology and innovation. ### ^{[22][23][24][25][26][9][10]}Stiff Competition in a Growing Market Despite Tesla's struggles, India's overall electric vehicle market is experiencing rapid growth. Total retail sales of EVs in India increased by 17.78% in October 2025, reaching 18,055 units. The m^[4][6][27]arket is projected to nearly double from $54.41 billion in 2025 to $110.7 billion by 2029. Tesl^[16][28]a faces intense competition from both domestic and international players. Indian automakers like Tata Motors, JSW MG Motor India, and Mahindra & Mahindra dominate the electric passenger vehicle segment. Tata ^{[16][12][29][8][28][27]}Motors alone holds over 53% of the market share, offering more affordable models. Vietn^[16]amese automaker VinFast is also gaining traction with competitively priced models and an expanding showroom network. Luxur^[27]y brands such as Mercedes-Benz and BMW are also established in the premium EV segment. India^[30][12][8]n consumers are highly price-sensitive, which makes it challenging for premium imported vehicles to gain significant market share without local production. ### ^[8][15]Limited Presence and Infrastructure Challenges Tesla's current footprint in India remains limited. The company opened its first showroom in Mumbai in July 2025, followed by a second experience center in Delhi in August 2025. Only ^{[2][3][4][8][6]}the Model Y SUV is currently available, offered in two variants. Indi^[2][4][6]a's developing charging infrastructure also presents a hurdle for Tesla. Inadequate charging stations and challenging road conditions in some areas can complicate the driving experience for electric vehicle owners. These^[7][31][8] infrastructure gaps require substantial investment to support widespread EV adoption. Tesl^[31]a's current sales figures suggest the company is in an early market testing phase rather than a mass expansion. Its s^[1]trategy in India appears focused on establishing a presence and understanding market dynamics, with a potential for larger growth if local manufacturing is established. Local assembly could reduce prices by 20-25%, making Tesla cars more appealing to Indian buyers. ^[1]