Tesla's India Sales Climb After Price Cuts and New Model Launch

Tesla has registered 993 vehicles in India since starting deliveries in September 2025, with September 2026 marking a record month of 294 registrations following price cuts and the launch of the six-seat Model Y L.

Sales and Pricing

When Tesla first entered the Indian market in July 2025, it offered a Model Y priced at roughly $70,000, which was almost double its US price at the time. Slow demand followed, with the company finishing 2025 at 226 registrations and adding only 202 more between January and May 2026. February recorded a low point of 29 cars. To boost numbers, Tesla launched the Model Y L on April 22 at ₹61.99 lakh with deliveries starting in June, undercutting the older five-seat Model Y Long Range priced at ₹67.89 lakh, which has since been dropped. In late May, Tesla cut the entry-level Model Y price by 15%, dropping it from ₹59.89 lakh to ₹50.89 lakh. Following these changes, Tesla recorded 565 registrations over four months, driven largely by the Model Y L, which accounted for 81% of Tesla's September registrations.

Market Position

India registered 35,995 electric cars in September, marking a 98% increase from a year prior, led by Tata with 14,769 vehicles. Tesla's September record accounts for about 0.8% of the country's overall EV market. Within the luxury segment, Tesla ranks as the second-biggest luxury electric vehicle brand with about 30% of the market, placing behind BMW at 502 units and ahead of Mercedes-Benz at 125 units. Meanwhile, Vietnamese automaker VinFast, which assembles cars locally in Tamil Nadu and prices its SUVs between ₹18 lakh and ₹23 lakh, registered 2,963 cars in India in September alone. India's Minister of Heavy Industries confirmed in May that Tesla will not build a factory in the country, meaning all its vehicles continue to arrive as imports subject to duties.

Context

High import duties and the lack of local manufacturing shape how international automakers price and sell electric vehicles in India. While local assembly helps brands offer lower price points, importing vehicles directly often results in higher costs for consumers.