Tesla's Model Y reports underwhelming sales in India as tariffs bite

Tesla entered the Indian market in July and has received fewer orders than expected, reportedly just over 600. Based on quarterly results, the number of sales in India equals the number of vehicles delivered worldwide every four hours during Q1.

Elon’s EV maker plans to deliver 300-500 units from its Shanghai plant to India in 2025. The first batch, arriving this September, will target cities such as Mumbai, Delhi, Pune, and Gurugram. The automaker had estimated a full annual quota of 2,500 cars in 2025.  

Elon Musk plans to deliver 300-500 EV cars to India this September

The Tesla Model Y EV is priced at over 6 million rupees ($69,751), much higher than the current range of EVs in India, which are around 2.2 million rupees ($24,966). The Bloomberg report cited high tariff impacts as the main driver for such pricing in the country.

Premium electric vehicles’ total sales went above 5% of total car sales in Q1 and Q2 of 2025. Only 2,800 models priced between $51,038 and $79,393 were sold worldwide in the first half of 2025, reflecting Trump’s tariff impact on the EV market.

Musk’s company opened its first showroom in India in August and has begun installing superchargers across Delhi and Mumbai. The company plans to expand to southern India next year. The report revealed that Tesla’s reliance on brand recognition over marketing has limited its regional auto sales. 

Globally, the EV maker has faced extended pressure, with a 13% drop in sales in China and the U.S., mainly due to tariffs. The company anticipated that a tariff drop would ease the pressure over time. The ongoing India vs. U.S. trade negotiations have renewed tensions in the market, with the recent 50% slap on India, as reported by Cryptopolitan.

An India-Europe trade deal has remained stalled despite Tesla’s hope that cheaper imports would originate from the German plant.

Trump’s tariffs on India have threatened approximately 55% of India’s $87 billion export market to the U.S. Several sectors have been affected, including agricultural products markets and textile industries. Local manufacturers have been forced to lay off workers due to reduced orders. 

The Indian rupee is trading at 88.16 rupees to the dollar and is down 0.19% today. The rupee weakened by 0.6% throughout the past week when the announcement came in on August 27.  The YTD of the currency has also weakened by 2.3% following the tariff landscape changes.  

BYD outperforms Tesla in India with over 1,200 car sales in the first half of 2025

BYD of China, an EV competitor to Tesla, sold over 1,200 Sealion 7 SUVs to India this year at a starting price of $55,567 despite the country’s tariff uncertainty. BYD’s success shows how India is price-sensitive across the EV market. The report revealed that Tesla’s next approach to pricing, marketing, and distribution across India would be critical in establishing a stronger footprint in the country. 

Tesla stock is down 3.5% today, with a negative YTD of 17.3%. The stock experienced a positive change throughout last month largely due to increased sales, with a 7% rise, and is currently trading at $333.87. The company’s current market capitalization is $1.05T with a yearly stock range of $207.03 – $488.54.

Cryptopolitan reported recently that Tesla is also losing ground in China’s market share due to competition from local EV makers such as BYD. Less than 40,000 units were sold in June, compared to 57,000 in the same period of the previous year. Tesla currently controls about 4% of the market share in China, while BYD controls approximately 29%.  

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