‘Loot lo, loot lo,’ a man yells while recording scenes after a truck toppled in Andhra Pradesh’s Nellore. His video is now going viral, sparking discussions online over ‘insensitivity’. But what exactly happened? The truck was loaded with bottles of cold drinks (primarily bottles of Thums
Editorial independence is core to our work. Some links may earn us a commission, without influencing our opinions.Big price drop on 4K smart TVs: Up to 60% off on Samsung, Sony, LG and moreSmart TVs on Amazon are seeing noticeable price drops, making it easier to upgrade to sharper visuals
NRI installs Statue of Liberty replica atop Jalandhar home after 26 years in New YorkAn NRI installed a Statue of Liberty replica on his Jalandhar home, drawing visitors and going viral online. Published on: Mar 22, 2026 7:39 AM IST By Mahipal Singh Chouhan Share via Copy link A unique
West Bengal Chief Minister Mamata Banerjee on Saturday described Prime Minister Narendra Modi as the “biggest infiltrator” and reiterated her criticism of the Bharatiya Janata Party-led Union government in connection with the special intensive revision of voter rolls, PTI reported
Meet Team USA's ‘giantkillers’ who handed Tom Brady, Joe Burrow brutal losses in Fanatics Flag Football Published on: Mar 22, 2026 4:11 AM IST By Yash Nitish Bajaj Share via Copy link U.S. National Flag team's Isaiah Calhoun reacts after scoring a touchdown against the Wildcats FFC (AP) Key
A tough sell for Elon Musk? Tesla has a cold start in India
Tesla's India debut has faced significant hurdles, with roughly a third of imported Model Y SUVs remaining unsold. High import duties inflate prices, making the premium EVs uncompetitive against locally assembled rivals and feature-rich alternatives. Despite strong brand appeal, Tesla struggles to convert interest into sales in India's price-sensitive market.
When Tesla Inc. finally entered India in mid-2025, expectations were high. The Elon Musk-led electric vehicle maker had long teased the prospect of tapping the world's third-largest passenger-vehicle market, once even floating the idea of building a local manufacturing plant. Yet barely less than a year into its India journey, Tesla's debut has exposed the challenges of selling premium imported EVs in a price-sensitive but fast-evolving market.
According to a Bloomberg report, Tesla is struggling to sell roughly a third of the initial batch of vehicles it imported into India last year. Sluggish demand left around 100 Model Y sport utility vehicles unsold nearly four months after the company shipped about 300 units into the country, people familiar with the matter told Bloomberg. To reduce inventory, Tesla is offering discounts of up to Rs 2,00,000 on select Model Y variants, though these offers are being made quietly to individual customers rather than through a formal nationwide promotion.
ET Budget Survey: Tell us your wishlist
This slow start underlines the gap between Tesla's global brand power and the realities of the Indian auto market.
Also Read: Tesla's India letdown spurs discounts on unsold Model Y SUVs
Tesla's high prices, low conversions
Tesla's India entry was built around a single product: the Model Y. The SUV is currently sold in India at a starting price of nearly $70,000, making it one of the most expensive electric vehicles in its segment. Bloomberg reported earlier that Tesla had received about 600 bookings for the Model Y in India, but a significant portion of those orders had yet to convert into actual deliveries.
Official registration data highlights this disconnect. Tesla registered only 227 vehicles in India during all of 2025, as per Bloomberg. People familiar with the matter told Bloomberg that many customers who placed early deposits are now hesitant to complete purchases, particularly for the lower-priced, shorter-range Model Y variant. While there has been interest in the more expensive long-range version, deliveries of that model have also moved slower than expected, contributing further to inventory build-up.
Also Read: Tesla opens first full-scale experience centre in India
The drag of duties and market structure for Tesla
A core challenge for Tesla in India is pricing. Imported cars face customs duties that can go as high as 110%, significantly inflating sticker prices. Tesla was relying heavily on brand appeal to overcome these costs, an approach that has so far yielded limited success.
India's EV buyers remain highly value-conscious, even in the premium segment. While Tesla hoped to create aspiration-driven demand, the price gap between the Model Y and competing electric SUVs has pushed many buyers to consider alternatives that offer either lower prices or more features.
Tesla's difficulties in India also come at a time of weakening global momentum. Bloomberg reported that the company's worldwide sales declined in 2025 for a second straight year, allowing China's BYD Co. to overtake Tesla as the world's largest EV seller. This broader slowdown has reduced Tesla's flexibility to absorb losses or aggressively subsidize new markets like India.
Also Read: Tesla aims to develop EV ecosystem in India to boost long-term sales
Better-positioned rivals of Tesla
Tesla's underwhelming start stands in sharp contrast to the performance of some global competitors in India. BMW AG's Indian unit recorded nearly 200% growth in EV sales last year, selling around 3,700 vehicles, according to BMW India head Hardeep Singh Brar as reported by Bloomberg. A key driver was the locally assembled iX1, which benefits from significantly lower costs compared to fully imported models.
China's BYD has also made steady gains. Bloomberg noted that BYD's India registrations rose 88% last year to over 5,400 cars, supported by a broader range of price points and partnerships with local players. Models such as the BYD Sealion 7, which offers more features at a lower starting price than the Model Y, have attracted customers who might otherwise have considered Tesla.
Even buyers who test-drive Tesla vehicles often walk away. Bloomberg reported that some customers choose BMW's entry-level iX1 due to its lower price, while others prefer BYD models that offer richer feature sets, exposing Tesla's thin product portfolio in India.
Tesla's limited visibility and infrastructure constraints
Beyond pricing, Tesla's limited physical presence has hampered brand traction. With only a handful of showrooms and no local manufacturing, Tesla lacks the widespread visibility enjoyed by established luxury carmakers. Service infrastructure remains sparse, increasing concerns among buyers about maintenance, repairs and long-term ownership.
Tesla hired Sharad Agarwal, former head of Lamborghini India, in November to lead its local operations and strengthen its appeal to luxury buyers. However, rebuilding confidence in a market where after-sales support plays a major role in purchase decisions will take time. Tesla currently has no plans to manufacture vehicles in India and is focused solely on selling imported cars through showrooms, keeping costs high and volumes constrained.
A market moving faster than Tesla
Tesla's slow traction is particularly striking given the rapid acceleration of India's broader EV market. Electric vehicle retail sales rose 16.37% year-on-year to 2.27 million units in 2025, driven by a 77% surge in electric passenger car sales, according to data released by the Federation of Automobile Dealers Associations (FADA).
Electric car sales climbed to 176,817 units in 2025 from 99,975 units a year earlier, fueled largely by mass-market manufacturers such as Tata Motors and JSW MG Motor India. Competitive pricing, improving product quality, state-level incentives and lower running costs compared to petrol and diesel vehicles are pushing EVs into the mainstream.
This expanding base creates long-term potential for premium brands, but it also raises expectations around affordability, infrastructure and localised offerings, areas where Tesla is currently lagging.
Tesla building an ecosystem, not just selling cars
Recognising these challenges, Tesla is attempting to lay groundwork for long-term growth. ET reported in November that Tesla is working on developing an EV ecosystem in India to support adoption. The company plans to install charging points at customers' homes, destinations such as malls and hotels, and superchargers in major cities.
“We always build our infrastructure around the lifestyle of our customers, where they eat, where they work, where they go for staycations,” Tesla India General Manager Sharad Agarwal had told ET, outlining a roadmap aimed at easing range anxiety and improving ownership experience.
Agarwal also told Reuters in November that Tesla expects Indian consumers to recover roughly one-third of the Model Y's 6 million rupee price over four to five years through savings on fuel and maintenance. This cost-of-ownership argument mirrors Tesla's strategy in other high-cost markets, though its effectiveness in India remains uncertain yet.
Hope floats for Tesla
Bloomberg has previously reported that Tesla's India plans hinge partly on ongoing trade negotiations that could reduce import duties. Discussions around a US-India bilateral trade agreement have so far dragged on, delaying any relief. An India-Europe free trade agreement, if finalised, could also allow Tesla to import vehicles from its German factory at lower tariff rates.
Until such changes materialize, Tesla's pricing disadvantage is likely to persist, limiting volumes and forcing the company to rely on discounts and selective incentives to move inventory.
However, Tesla's initial struggles in India do not necessarily signal long-term failure, but they highlight the limits of brand-led entry in a complex, cost-sensitive market. The company has entered India at a time when EV adoption is accelerating, yet competition is intensifying and customer expectations are evolving rapidly. For now, Tesla remains on the sidelines of India's EV boom, present but not yet influential. Whether it can convert early interest into sustained demand will depend on its ability to localise strategy, expand infrastructure, navigate trade barriers and adapt its product mix to a market that is moving faster than Tesla.Add as a Reliable and Trusted News Source Add Now!
Source: EconomicTimes
Related Posts: 10 actors who play roughly the same roles every time Atlassian to cut roughly 10% jobs in pivot to AI India must keep Gaganyaan on course despite hurdles Kevin Warsh 'regime change' faces steep hurdles at a sprawling US central bank What are the hurdles for president's legal argument No Hurdles In BJP-Shiv Sena Alliance For Municipal Polls Election Commission flags key hurdles to creating a common electoral roll US creates new visa hurdles for Indian students Fed Up With US Visa Hurdles Compliance hurdles weigh heavily on GCCs expanding to tier-II cities
The US has lifted sanctions on some Iranian oil, as it scrambles to contain the impact of its war in Iran on energy markets. Treasury Secretary Scott Bessent announced the issuing of a narrowly tailored, short-term authorisation permitting the sale of Iranian oil currently stranded at sea
14 hours ago
Delhi engulfed in ‘not very common’ dense fog in March; records lowest temperature since February 26Experts attributed the occurrence of fog to a combination of recent rain, high moisture content in the atmosphere and relatively calm winds overnight. Updated on: Mar 22
14 hours ago
Bournemouth held Manchester United to a 2-2 draw at the Vitality Stadium on Saturday in their Premier League clash. Bruno Fernandes strike and an own goal accounted for United’s tally, while Ryan Christie and Junior Kroupi found the net for the Cherries in a match that also saw Harry Maguire sent
14 hours ago
Chandrasekhar, who is fighting against CPI(M) leader and state Education Minister V Sivankutty, and K S Sabarinadhan from the Congress in the April 9 polls, submitted his nomination papers before the returning officer during the day, accompanied by Rajasthan CM Bhajanlal Sharma.Chandrasekhar
14 hours ago
In 2018, a young tigress stopped appearing on camera traps in Bandhavgarh Tiger Reserve in Madhya Pradesh. There was no official report of conflict as well as no records of carcass recovery or poaching incidents. This indicated that she had not died within the reserve.In 2018
14 hours ago
The Union government on Saturday allowed an additional 20% allocation of commercial liquefied petroleum gas to states and Union Territories, taking the overall allocation to 50%. Of the total amount, an allocation of 10% will be given on the condition that states undertake measures to ease the
14 hours ago
DICGC risk-based premium: How much will banks pay for deposit insurance?RBP framework provides a bank with a discount of up to 33.33% on the deposit insurance premium based on its rating category and an up to 25% vintage incentive. Updated on: Mar 22
14 hours ago
Maharashtra politics heats up after a state women's commission chief resigns due to her association with a spiritual leader accused of rape. The Uddhav Balasaheb Thackeray Sena now targets Deputy Chief Minister Eknath Shinde. Leaders demand action against political followers of such spiritual
14 hours ago
TikTok star Taylor Frankie Paul sat uneasily in her chair during a live interview on ABC's Good Morning America this week, caught between trying to promote her turn in the network's new series of The Bachelorette and addressing fresh domestic violence allegations lodged against her by her
14 hours ago
West Bengal Chief Minister Mamata Banerjee assured the minority community of her support during her Eid-ul-Fitr address, criticizing the BJP's alleged deletion of minority names from electoral rolls. She vowed to challenge these actions in the Supreme Court
14 hours ago
In the age of convenience, using frozen, deep-fried or processed meats that are brimming with preservatives is the norm. It makes life easier on days when work and life collide. However, a new study has found that eating too much ultra-processed food may significantly increase the risk of serious
14 hours ago
Mohit Suri on eight-hour shift in film industry debate: ‘Emraan Hashmi shot 24 hours with me’Director Mohit Suri feels improved working hours shouldn’t be reserved only for actors, but must also consider the well-being of the entire crew. Mar 22, 2026
14 hours ago
Cuba’s national power grid suffered a nationwide collapse on Saturday, plunging the island into darkness for the second time in a week as the communist government struggles to maintain electricity supplies for its 10 million residents amid a U.S.-imposed oil blockade and ageing infrastructure
14 hours ago
The National Farmers' Union has warned that food prices in the UK are likely to go up as a result of the conflict in the Middle East. NFU President Tom Bradshaw told the BBC that the price of cucumbers and tomatoes could rise over the next six weeks
14 hours ago
Global intelligence agencies, including the CIA and Mossad, were closely watching during Nowruz on Friday to see whether Iran’s new Supreme Leader, Mojtaba Khamenei, would uphold his father’s tradition of a New Year’s address. However, the holiday went by without Mojtaba’s address
14 hours ago
Iran’s Islamic Revolutionary Guard Corps (IRGC) on Saturday claimed it had struck an Israeli F-16 fighter jet over central Iran, even as Israel announced fresh overnight strikes on ballistic missile production facilities in Tehran. In a statement carried by Sepah News
14 hours ago
These have been directed by PNGRB to shorten the timeline between the submission of applications and the commencement of gas supply to consumer households and pursue mass awareness initiatives. Also Read :India set to become rich by 2047? How growth
14 hours ago
The combined wealth of Assam Chief Minister Himanta Biswa Sarma and his wife Riniki Bhuyan Sarma has increased to Rs 35.16 crore in 2026 from 17.27 crore in 2021, showed the affidavit filed by the Bharatiya Janata Party leader on Friday. Himanta Biswa Sarma had filed the affidavit along with his
14 hours ago
When Liverpool came to Brighton last May, the away end was in party mode at the full-time whistle despite the defeat as they sang and celebrated with inflatables and balloons. By then, Arne Slot's side had won the Premier League title and a trip to the south coast was another excuse to enjoy
14 hours ago
The National Highways Authority of India will use advanced AI dashcams on 40,000 km of highways. This initiative aims to improve road maintenance and safety through data-driven operations. High-resolution imagery will help identify over 30 types of defects
14 hours ago
For most office workers in India, the concept of working out like Bollywood’s “New Age Action Hero" Vidyut Jammwal, who is known for his incredible Kalaripayattu-powered feats, seems absurdly unattainable. The actor is believed to exercise for up to nine hours every day
14 hours ago
In the high-stakes arena of the 2026 Assam assembly elections, observers say Chief Minister Himanta Biswa Sarma has deployed a political strategy that is as audacious as it is effective: dismantling the Congress party by absorbing its most influential DNA. On March 19
14 hours ago
Indian man escorted off flight after demanding seat change from US-based techieA United States-based software developer has sparked a discussion on in-flight etiquette after refusing to switch seats with an Indian man on a plane Published on: Mar 22
14 hours ago
India faces an LPG crisis as the US-Israeli war on Iran disrupts shipments through the Strait of Hormuz, which supplies 85-90% of the country’s imports. Tanker delays and safety concerns have caused cylinder shortages, rising prices, and rationing, hitting households and eateries hard
14 hours ago
Comprehensive financial planning: Reflect on FY25 and plan for FY26 and beyondThe annual review of the financial year. Updated on: Mar 22, 2026 4:10 AM IST By Gopal Gidwani Share via Copy link The financial year-end is a good time to reflect on what worked well this year and what did not go as
14 hours ago
With the inauguration of the Noida International Airport in Jewar drawing closer, a key concern for travellers across Delhi-NCR is accessibility. While the airport promises to ease pressure on Delhi’s existing aviation infrastructure, its location in western Uttar Pradesh means commute time will
14 hours ago
Editorial independence is core to our work. Some links may earn us a commission, without influencing our opinions.7 Running watches that actually help you run better in 2026Running watches have changed how people track every mile. Here are seven options that stand out when it comes to performance
14 hours ago
