Tesla's Model Y is set to roll on Indian roads as Maharashtra Transport Minister Pratap Sarnaik on Friday took delivery from the US carmaker’s newly opened showroom in Mumbai’s Bandra Kurla Complex and became the first customer of Elon Musk-led company in India.
Sarnaik, in a post on X, said the move was intended to spread awareness about electric mobility among citizens, particularly the younger generation.
"I have taken delivery of the Tesla to spread awareness about electric mobility among citizens, especially the younger generation. I want children to see these cars early and understand the importance of sustainable transportation," PTI quoted Sarnaik as saying. He also said that he would gift the vehicle to his grandson as a symbolic gesture.
The development comes as Tesla’s India entry has fallen short of the hype that preceded it. Since opening bookings in mid-July, the company has secured just over 600 orders, a modest figure compared to its global scale, where it delivers the same number every few hours, Bloomberg reported on Sept 2.
The company now expects to ship between 350 and 500 vehicles to India this year, with the first consignment arriving from Shanghai in early September. Deliveries will be limited to Mumbai, Delhi, Pune and Gurugram, reflecting Tesla’s initial footprint.
Tesla had earlier aimed to utilise its full quota of 2,500 cars this year. But high import duties, which push the cost of its entry-level Model Y above ₹60 lakh, have curbed demand in a country where the average EV sells for about ₹22 lakh.
Within the premium bracket, just 2,800 units priced between ₹45 lakh and ₹70 lakh were sold in the first half of 2025. Chinese rival BYD has fared better, selling over 1,200 units of its Sealion 7 SUV during the same period, helped by a lower starting price of ₹49 lakh.
"Even if the cost is slightly higher today, what matters more is setting the right example and accelerating EV adoption," Sarnaik said, noting that Maharashtra has announced incentives such as toll exemptions on Atal Setu and the Samruddhi Expressway and that the state transport body has already procured about 5,000 electric buses.
Tesla’s challenges go beyond pricing. Hopes of tariff relief through trade talks have dimmed amid geopolitical tensions, while showroom interest has not yet translated into significant sales. Still, the company is pressing ahead by installing charging stations in Mumbai and Delhi and planning a new experience centre in South India next year, Bloomberg reported.
Source Name : Economic Times