Tesla Inc. (NASDAQ:TSLA) has secured just over 600 car orders since its mid-July sales launch in India, not meeting its own projections.
Tesla To Ship Around 500 Cars This Year
The Elon Musk-led company now plans to ship 350 to 500 cars to India this year, dashing the company’s hopes of utilising its quota of 2,500 cars, according to a report by Reuters, via Bloomberg News. The initial batch of cars will arrive from Shanghai in early September.
Deliveries will initially focus on Mumbai, Delhi, Pune, and Gurugram, according to the report. The shipment size depends on full payments received and the company’s delivery capabilities outside these cities.
Model Y Priced Around $70,000
In July, Tesla introduced its Model Y in India, priced at approximately $70,000. The automaker has been advocating for reduced import duties in India. Despite global factory overcapacity and declining sales, Tesla is pursuing a strategy of selling imported vehicles in India, targeting a niche market where EVs represent just 4% of total sales.
See Also: Tesla's Robotaxi Dream Hits Wall of Distrust—Waymo Cruises Ahead
India’s road infrastructure has improved, but challenges remain, including limited EV chargers, stray animals, and potholes, even in urban areas, the report adds.
Tesla’s entry into the Indian market marks a significant milestone for the company, as it seeks to expand its global footprint. The launch of the Model Y in India was accompanied by the opening of its first showroom in Mumbai.
Tesla’s Presence In India, Competition From BYD
This move was part of Musk’s broader strategy to establish a presence in India, further bolstered by Starlink’s regulatory approval to operate in the country.
However, Tesla faces stiff competition from local and international players. Notably, BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) has made significant strides in the Indian market, achieving a sales milestone of over 3,000 units by early August.
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: VTT Studio / Shutterstock.com
