Experts Believe that Strong Domestic EV Players and High Import Costs Continue to Hinder Tesla’s Broader Market Adoption
Tesla’s India operations have witnessed a sharp decrease in October 2025, with sales reducing by 37.5% month-over-month. According to Federation of Automobile Dealers Associations (FADA) data, the tech giant sold only 40 units during this time period.
Tesla Sales in India
Tesla opened its maiden showroom in India in July and delivered 64 units in September, followed by 40 cars in October. The US-based electric vehicle (EV) manufacturer currently offers only the Model Y SUV in India. The cumulative sales now stand at 104 units.
At present, the company has two showrooms in India, one in Maker Maxity, Bandra Kurla Complex, Mumbai, and the other in Worldmark 3, Aerocity, New Delhi.
Price of Model Y SUV
Model Y has been introduced in India as a completely built unit (CBU) and is available in a rear-wheel-drive (RWD) configuration.
The standard RWD is available at Rs 59.89 lakh (ex-showroom), and the Long Range RWD model is sold for Rs 67.89 lakh (ex-showroom).
The prices are higher than in global markets, thanks to India's high import duties on CBUs.
India's EV market is still in the early stages, but Model Y's pricing puts it against luxury electric SUVs from Mercedes-Benz and BMW.
The ex-showroom prices of competitor models Mercedes-Benz EQA, Mercedes-Benz EQB, and BMW iX1 LWB are available at Rs 67.20 lakh, Rs 72.20 lakh, and Rs 49.90 lakh, respectively.
About Model Y
The standard RWD variant delivers a range of up to 500km on a full charge, while the Long Range version extends that to 622km.
The 0-100 km/h sprint takes 5.9 seconds in the standard model and 5.6 seconds in the Long Range variant, with both achieving a top speed of 201 km/h.
The standard Model Y can recover about 238km of range in 15 minutes, while the Long Range can add around 267km in the same time using a fast charger.
Model Y follows Tesla's minimalist approach with aerodynamic styling, smooth body lines, sharp edges, and full LED lighting with front and rear lightbars. It also employs eight cameras to support its driver-assistance functions.
Tesla has focused on improving cabin refinement with a revised suspension setup and laminated glass for the roof and windows to reduce noise.
The front seats are well ventilated, while the second row offers power folding, heating, and two-way adjustment. Ambient lighting is integrated into the doors and footwells. The car also provides a nine-speaker audio system.
The SUV features two touchscreens: a 15.4-inch display at the front and an 8-inch unit for rear passengers.
EV Sales in India
According to data from FADA, India's EV market witnessed retail sales of 18,055 units in October, logging a growth of 17.78% month-on-month (m-o-m), against 15,329 units in September.
FADA reports revealed that India’s retail vehicle sales rose 40.5% year-on-year in October to a record 40.2 lakh units, led by a sharp rise in two-wheeler demand. It was driven by festive demand, the introduction of GST 2.0, and stronger rural spending.
Other Vehicle Sales in India
The two-wheeler sales increased 51.8% to 31.5 lakh units and passenger vehicles grew 11.4% to 5.57 lakh units, the FADA report mentioned.
Notably, the sale of commercial vehicles was up 17.7% to 1.08 lakh units, tractor sales increased 14.2% to 73,577 units, and three-wheeler sales grew 5.4% to 1.30 lakh units.
The Model Y is available in six colour options with Stealth Grey as standard. Industry experts believe that the drop in sales could be driven by supply constraints, pricing, and limited dealership across the country.
If Tesla decides to move ahead with the manufacturing plan in India, the price could be reduced by 25-30%. This might change the EV market scenario in India, which is dominated by Tata and Mahindra.
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