Tesla Begins Deliveries in India with Full Supply from China’s Shanghai Plant

In India, the rear-wheel-drive version of Model Y is priced at about 5.989 million rupees ($67,000), and the long-range rear-wheel-drive version at about 6.789 million rupees ($76,000).

On September 27, Tao Lin, Vice President of Tesla, announced via Weibo that the company has begun delivering its first vehicles in India, with all units supplied by the Shanghai Gigafactory.

In July, Tesla opened its first showroom in India. The company rapidly completed order intake and delivery scheduling, taking only a few months from launch to handover. As Tesla does not yet have a manufacturing facility in India, all initial sales rely entirely on vehicles exported from China.

In terms of pricing, the Model Y is positioned in India’s premium market. According to Tesla’s official website, the rear-wheel-drive version is priced at around 5.989 million rupees ($67,000), while the long-range rear-wheel-drive version is about 6.789 million rupees ($76,000).

These prices are nearly double those in the Chinese market, where the Model Y rear-wheel-drive version sells for RMB 263,500 ($37,000) and the long-range all-wheel-drive version costs RMB 313,500 ($44,000). The sharp price gap is primarily driven by India’s import duties of up to 70 percent on electric vehicles.

Tesla’s initial target segment in India is not mass-market consumers but affluent buyers with strong purchasing power. Exporting from China instead of producing locally reflects a pragmatic approach at this stage.

On one hand, Tesla faces mounting pressure in its major global markets. On the other, the Shanghai Gigafactory currently has ample production capacity, and exports to India help alleviate overcapacity.

Despite this, Tesla still confronts structural challenges in India, including limited market penetration and high entry barriers. Electric vehicles account for less than 5 percent of total sales, and the luxury-vehicle segment represents only about 1 percent of national passenger car volume.

Media reports citing industry insiders indicate that Tesla has received just over 600 orders since launching sales in mid-July—a figure well below expectations.

This year, Tesla’s deliveries have fallen across its three core markets—the United States, China, and Europe—making the timing of its India entry particularly sensitive. In China, Tesla sold around 515,000 vehicles from January to August, down 12.3% from 587,000 units in the same period of 2024.

Although the market had widely anticipated that Tesla would build a factory in India, current developments suggest that plan has been put on hold. The company is instead testing the market through imports and intends to expand showrooms and charging infrastructure in major cities such as Delhi.