Tesla’s India entry gains early momentum as bookings cross 1,200 units

Tesla’s much-anticipated entry into India is beginning to show early momentum, with the electric vehicle maker’s order book estimated to have crossed 1,200 units as of the first week of January, according to people familiar with the development.

Sources tracking the company’s India plans said Tesla is now aiming to close the current financial year (FY26) with around 1,500 confirmed bookings, reflecting steady traction despite a measured rollout and limited physical presence so far.

“The pace of bookings points to encouraging early demand, particularly in large metro markets where buyers are more receptive to premium electric vehicles,” said one person aware of the company’s strategy.

The source added that Tesla’s India roadmap extends beyond the Model Y. “Once the Model Y rollout is firmly in place, the Model 3 is expected to follow, with the Model S and Model X lined up for subsequent phases.”

Sharp jump in bookings since September

The latest booking figure marks a twofold increase from early September, when several media reports had pegged Tesla’s India orders at around 600 units for the Model Y. Since then, interest has accelerated, aided by Tesla’s expanding retail footprint and growing visibility among affluent buyers.

According to data available on the Vahan dashboard, Tesla India Motors and Energy Pvt. Ltd.—the wholly owned Indian arm of Tesla Inc.—has recorded 231 vehicle registrations year-to-date since beginning deliveries in July 2025. This represents a small fraction of India’s total electric passenger vehicle sales of 143,448 units recorded so far in FY26, underscoring Tesla’s niche positioning in a market still dominated by mass and mid-premium offerings.

Industry observers note that booking numbers reflect customer intent and market interest, while registration data captures vehicles that have been formally delivered and registered with transport authorities.

Delhi, NCR showrooms boost demand

Tesla’s booking momentum has also been bolstered by the opening of its Delhi showroom at Aerocity a few months back, followed by a mega sales-cum-service outlet in Gurgaon.

“The initial 600 bookings were limited to the first two months and were valid only until mid-August,” said another source requesting anonymity. “Since the Delhi and now Gurgaon outlets have opened, that location alone has generated close to 500–600 bookings, driven largely by startup founders, CEOs, and high-net-worth individuals from the Delhi-NCR region.”

When Fortune India reached out to Tesla India to seek comments on the response so far and the factors driving customer interest, the company declined to comment.

Premium EV space turns crowded

Tesla’s early performance is being closely watched as India’s battery electric vehicle (BEV) market becomes increasingly competitive. The Model Y—Tesla’s best-selling vehicle globally—is expected to anchor the company’s initial India push. Deliveries commenced on September 5, 2025, with the first vehicle handed over to Maharashtra transport minister Pratap Sarnaik.

Tesla enters a market where luxury carmakers such as Mercedes-Benz, BMW, Audi, Jaguar Land Rover and Volvo have already expanded their EV portfolios, while domestic players like Tata Motors and Mahindra & Mahindra continue to dominate the mass-market segment.

“Tesla’s performance in India needs to be seen in the context of other premium brands in the EV space over the last one year,” said Avik Chattopadhyay, co-founder of Expereal, adding, “For those going for MB, a Tesla is lower in stature. For those going for Mahindra, it’s the national pride of owning something truly world-class, which a Tesla cannot match. And for those choosing BYD, they clearly go for cutting-edge tech and value for money, which a Tesla does not provide.”

According to him, “Tesla has its job cut out for the Indian market in terms of relevance and storytelling. It just cannot rest on its US laurels and hope to clock numbers, especially as its performance is dipping in markets outside its home.”

Puneet Gupta, director at S&P Global Mobility, stated that Tesla’s booking response highlights both opportunity and challenge. “A strong global brand alone is not enough. Tesla’s cautious entry, limited sales and service footprint, and lack of localisation have constrained wider acceptance so far,” he said, adding that a deeper commitment to local manufacturing could still allow Tesla to reshape India’s premium EV market.