Tesla has secured just over 600 orders since launching sales in India in mid-July, a figure that fell short of its expectations, Bloomberg News reported on Tuesday, citing people familiar with the matter.
The U.S. electric vehicle maker plans to ship between 350 and 500 cars to India this year, with the first batch expected to arrive from Shanghai in early September, the report said. Deliveries will initially be limited to Mumbai, Delhi, Pune and Gurugram, based on fully paid orders and the company’s delivery capacity in the four cities where it has a physical presence.
Tesla introduced its Model Y in India in July at a price of about $70,000, reflecting the country’s steep import tariffs. The company has long urged India to reduce levies on imported cars.
Amid excess capacity at its factories and slowing global sales, Tesla has opted to sell imported models in India despite duties. Deliveries, estimated to begin in the third quarter, will target a niche segment of the market where EVs represent only about 4% of overall car sales. Challenges remain, including limited charging infrastructure, inconsistent traffic discipline, potholes and stray animals, even in urban areas, Bloomberg said.