Made-In-China Tesla Model Y Outsold by BMW, Mercedes-Benz EVs In India
Tesla has finally entered the Indian market with deliveries of the Model Y, but its first month’s numbers show a modest beginning. According to Vahan registration data, Tesla managed 60 units in September. In comparison, BMW sold 307 premium EVs and Mercedes-Benz 95 units, leaving Tesla trailing in the very segment it has dominated globally.
Tesla’s Entry Through Imports
Bookings for the Model Y began in July, and cars were displayed at Tesla’s first Indian showroom in Mumbai. The vehicles are being shipped from Tesla’s Shanghai plant in China.
With a price tag of roughly ₹60 lakh ex-showroom, the Model Y enters the luxury EV segment where volumes are small but competition is intense.
The company initially aimed to bring in about 2,500 units in its first phase. That target has since been scaled back to 350–500 units after muted response.
Deliveries so far have been focused on metros such as Mumbai, Delhi, Pune and Gurugram. Tesla has said it will add more cities, but expansion remains slow.
Why German Rivals Stay Ahead
BMW and Mercedes-Benz have an early mover advantage in India’s premium EV space. BMW’s iX and i4 models have built a steady presence, while Mercedes-Benz sells the EQB and EQC.
In September, BMW’s 307 units and Mercedes’s 95 underline how strong their foothold is. Both companies benefit from years of experience, well-developed dealer networks and established service centres. These factors matter to Indian luxury buyers, who place high value on after-sales confidence and resale value.
Tesla, despite its global reputation, is starting from scratch. It has no service history in India, no established resale market, and only one model available. For wealthy buyers, the absence of proven support structures can be a deterrent, even when the brand is aspirational.
Key Obstacles Tesla Faces
The biggest hurdle is price. Import duties make the Model Y far more expensive than its global positioning suggests. Without local assembly, Tesla cannot access incentives that reward Make-in-India production. The lack of variety is another weakness - while BMW and Mercedes offer multiple EVs, Tesla has placed all its bets on one model.
Charging infrastructure is also limited. Tesla is famous for its Supercharger network worldwide, but in India it has yet to roll out a similar system, barring one at Mumbai. Buyers must rely on existing third-party chargers or home setups. Service is another challenge. BMW and Mercedes can lean on decades of infrastructure, while Tesla is still piecing together a skeletal network.
Numbers in Perspective
Tesla Model Y: 60 units in September
BMW: 307 units in premium EVs
Mercedes-Benz: 95 units in premium EVs
The numbers highlight that Tesla’s much-publicised entry is still very small compared to rivals. For a brand that dominates EV sales in markets like the US and Europe, the Indian performance underlines the difficulty of translating global dominance into local success.
What Can Tesla Do To Sell More?
Tesla will need to address these gaps quickly. Setting up local assembly would bring down costs and unlock incentives. Expanding its portfolio with smaller or more affordable EVs would broaden its appeal.
Equally important will be building service and charging infrastructure to reassure buyers. Without these steps, Tesla risks staying a niche player in a market where BMW and Mercedes are already entrenched.
For now, Tesla’s India journey has begun, but the early results show the challenges ahead. The Model Y has arrived, but the race is far from won.