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Tesla says it will begin Model Y deliveries in India in Q3 2025

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Amid the threat of a supply glut and fewer takers elsewhere, Tesla taps unexplored markets in India, despite the steep tariff on imported cars
Tesla says it will begin Model Y deliveries in India in Q3 2025
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Elon Musk’s Tesla said in a statement on Tuesday that it will start the deliveries of the newly launched Model Y in the third quarter of 2025. Earlier during the day, Tesla unveiled its first vehicle for India—the Tesla Model Y, the crossover version of the Tesla Model 3—starting from an ex-showroom price of ₹59,89,000 in Mumbai.

The company also announced that it will provide a free wall connector with the purchase of a new Tesla, to be installed in customers’ residences. This will, according to the carmaker, allow “customers to wake up with a fully charged Tesla daily, saving them trips to the gas station at a lower cost per mile.”

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Apart from the cars, Tesla designs, manufactures, deploys, owns, and operates one of the world’s largest fast-charging networks. It said that the first indoor hybrid station, with Superchargers and Destination chargers, will open soon. Tesla’s plan includes opening multiple Supercharging stations and destination charging stations at strategic locations to cover popular destinations across the country, and will be announced in the future.

Tesla’s entry into the Indian market comes at a time when the automaker is facing the possibility of registering another annual sales decline, which it can avoid if it sells more than a million units in the second half of the year. However, according to reports, this could be onerous for Tesla. Rising economic uncertainty, fuelled by U.S. President Donald Trump—and his avowed anti-EV stance of phasing out EV incentives—has dissuaded buyers in the U.S. An ageing product portfolio has also compounded Tesla’s misery.

Earlier this month, Tesla sold 3,84,122 vehicles in the April-June period, which was down from 4,43,956 vehicles in the year-ago period, but a sequential growth of 14%. According to news agency Reuters, Musk’s right-wing political activism—and his ongoing political feud with Trump—has alienated buyers both in the U.S. and key markets in Europe.

It added that a supply glut of vehicles in global gigafactories has led Tesla to tap an unexplored market in India, selling vehicles at a steep tariff, despite Musk’s vocal disdain of exorbitantly high import duties. The selling price of Tesla’s Model Y in India is nearly double the price at which it is sold in the U.S. The price is double that at which it is sold in China, where Tesla has a gigafactory.

Despite the overall dour sales sentiment, Tesla has seen a modest recovery in demand with the refreshed Model Y, which was launched in 2020, in China, where it snapped eight straight months of de-growth in sales, wooing some buyers despite the presence of BYD, which sells relatively cheaper electric vehicles in China.

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