US-based electric vehicle giant Tesla entered the Indian market in 2025 with high expectations, but its first partial year of retail operations delivered modest results. According to data from the Federation of Automobile Dealers Associations (FADA), Tesla sold a total of 225 units of its Model Y SUV — the only model currently offered in India — during the calendar year 2025.
Retail deliveries began after Tesla opened its maiden showroom (referred to as an “Experience Centre”) in Mumbai in July 2025. Subsequent centres followed in Delhi and Gurugram, but the company is yet to complete a full year of sales. The Model Y is imported as a completely built unit (CBU) with a rear-wheel-drive (RWD) powertrain, available in two trims:
- Standard RWD variant priced at Rs 59.89 lakh (ex-showroom)
- Long Range RWD variant priced at Rs 67.89 lakh (ex-showroom)
These prices are significantly higher than in many international markets, largely due to India’s steep import duties on fully built vehicles (often exceeding 100% in some cases, though reduced for certain EV commitments). This positions the Model Y in the premium luxury segment, competing against established players like Mercedes-Benz, BMW, and emerging local EV options.Monthly sales figures from FADA reveal a fluctuating but gradually improving trend in the latter half of the year:
- September: 64 units
- October: 40 units (a dip, possibly due to post-launch adjustments or seasonal factors)
- November: 48 units
- December: 73 units (peak for the period, showing signs of growing interest)
The total of 225 units reflects sales over just six months of active retailing (from July onward, with deliveries ramping up in September). While this marks Tesla’s official entry into one of the world’s largest and fastest-growing automotive markets, the numbers remain small compared to the broader Indian EV landscape.
India’s electric vehicle sector continued its strong expansion in 2025, accounting for approximately 8% of all new vehicle registrations. Total EV sales reached 2.3 million units, according to Vahan Portal data. However, this growth was dominated by two-wheelers (around 57%) and three-wheelers (35%), with four-wheeler EV sales standing at roughly 1.75 lakh units — a much smaller segment where premium imports like the Model Y compete.
The Model Y offers impressive specifications that appeal to tech-savvy buyers: up to 500 km range for the standard variant and 622 km for the Long Range (WLTP estimates), acceleration from 0-100 kph in as little as 5.6 seconds, and fast charging that adds around 238-267 km of range in 15 minutes. Tesla has also invested in infrastructure, deploying around 12 Superchargers and 10 destination chargers in key cities like Mumbai, Delhi, and Gurugram.
Despite these strengths, challenges persist. High pricing, limited model availability (only Model Y for now), competition from more affordable local EVs, and infrastructure gaps have tempered initial enthusiasm. Some reports indicate discounts were offered late in the year to move inventory, and registration data from sources like Vahan showed slightly varying figures (e.g., around 227 units in one account), but FADA’s retail data remains the primary benchmark for dealer-level sales.
Tesla’s India entry is still in its early stages. With potential plans for local manufacturing or assembly in discussion (tied to past government negotiations), lower prices and broader model options could accelerate growth in 2026 and beyond. For now, the 225 units sold in 2025 represent a cautious first step for the EV pioneer in a market full of promise — but also intense competition and price sensitivity.
