Tesla’s India Launch Stalls With Just 600 Orders as Trade Tariffs and Traffic Chaos Loom

Published On: September 2, 2025 3:54 am

Tesla has received only around 600 orders since launching in India, far below expectations. Steep import tariffs, high prices, and India’s chaotic traffic conditions are proving major roadblocks for Elon Musk’s electric car ambitions.

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Weak Start for Tesla in India

Tesla’s long-awaited entry into India has hit a speed bump. Since sales began in mid-July 2025, the company has received just over 600 orders, Bloomberg reported — a figure that falls short of expectations.

The company plans to deliver only 350–500 cars this year, with the first batch arriving from its Shanghai plant in early September. Deliveries will be limited to Mumbai, Delhi, Pune, and Gurugram, where Tesla has opened showrooms.

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Tariffs Push Prices Sky-High

One of Tesla’s biggest hurdles is India’s steep import duties on electric vehicles. The flagship Model Y, priced around $70,000, costs more than three times the average price of a car in India.

For years, Tesla has lobbied New Delhi to lower tariffs, but Indian officials have resisted, arguing that the company should manufacture locally instead of selling fully imported cars. This trade war–style standoff has left Tesla targeting only the niche luxury market, rather than India’s growing middle class.

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Traffic Discipline and Road Realities

Beyond pricing, Tesla faces uniquely Indian challenges. EV adoption in the country remains low — just 4% of car sales — and consumers often cite poor road conditions as a deterrent.

From potholes and stray cattle to unpredictable driving habits, India’s chaotic traffic poses risks to Tesla’s advanced autonomous features. Even in metros, charging infrastructure remains patchy, further slowing demand.

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Global Context

Tesla’s India launch comes at a time when the company is battling slowing sales worldwide and trying to use up excess factory capacity. Selling in India was seen as a chance to expand into a massive market, but the lukewarm response raises questions about its strategy.

While Elon Musk has hinted at future local production, analysts say Tesla must either adapt to India’s realities or risk being sidelined in the world’s third-largest car market.

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