Tesla Completes One Year In India, Trails BMW, Mercedes-Benz And BYD

Tesla has completed one year in India since entering the market on July 15, 2025. After a challenging first year, Tesla has sold just 486 cars, falling behind its key rivals such as Mercedes-Benz, Volvo, and BMW.

The Indian electric car segment is booming, with many consumers looking to buy EVs, even in the premium segment. Brands such as Mercedes-Benz, BMW, Volvo, and BYD are already among the most preferred choices in the premium EV category.

Tesla Completes 1 Year in India

American EV manufacturer Tesla entered the Indian market last year after several years of delay due to import duties and related issues. The company manufactures its EVs in China and imports them into India.

As a result, the vehicles attract 100% import duty since they are neither manufactured nor assembled in India. Tesla opened its first showroom in Mumbai and launched the Model Y electric coupe SUV at a starting price of Rs 59.89 lakh (ex-showroom).

Tesla has also expanded to several key cities, including New Delhi, Gurugram, Hyderabad, and Bengaluru. It has also established multiple charging stations, including Superchargers. However, despite the growing demand for EVs, the company's first-year performance remained below expectations.

According to a Financial Express report, Tesla trailed its key rivals, including Mercedes-Benz and BMW. It also lagged behind brands such as BYD and Volvo, which offer similarly priced electric vehicles. Several industry experts believe Tesla's relatively low sales are due to its single-model portfolio, limited sales and service network, and higher pricing.

Most EVs sold in India fall within the Rs 10 lakh to Rs 30 lakh price bracket, whereas Tesla's offerings are priced significantly higher. Tata Motors, Mahindra, and MG currently lead the mass-market EV segment, while BYD, Mercedes-Benz, and BMW hold a significant share of the premium EV market.

In an effort to improve demand, Tesla also reduced the starting price of the Model Y by Rs 9 lakh. The standard variant is now priced at Rs 50.89 lakh (ex-showroom), while the Long Wheelbase variant is priced at Rs 61.99 lakh (ex-showroom). The standard variant claims a maximum range of 500 km and a top speed of 201 km/h. The more premium Long Wheelbase variant offers a claimed range of up to 681 km while retaining the same top speed.

Despite these changes, sales have not witnessed a significant increase. Tesla needs to make several changes to its India strategy, including expanding its presence to more cities, strengthening its charging infrastructure through its own network or partnerships, improving roadside assistance, customer support, financing options, and expanding its service network.

Starting local assembly in India could also allow the company to price its vehicles more competitively against rivals. With demand for premium EVs continuing to grow, Tesla has a significant opportunity to strengthen its position by expanding its footprint, improving accessibility, and localising its operations in the Indian market.