Tesla has logged a little over 600 orders in India since it began sales in mid-July, a figure that falls short of the company’s expectations, Bloomberg News reported Tuesday, citing sources.
The U.S. electric vehicle maker is now planning shipments of between 350 and 500 units to India this year, with the first batch arriving from Shanghai in early September, according to the report.
Initial deliveries will be restricted to Mumbai, Delhi, Pune, and Gurugram, based on full payments received and the company’s delivery capacity in areas where it maintains a physical presence.
The company launched its Model Y in India in July at a price of about $70,000, reflecting steep import tariffs on EVs. While Tesla has long urged New Delhi to ease such duties, it has nonetheless opted to test the market by selling fully imported vehicles.
Targeting a premium niche in India’s still-small EV market, where electric cars make up only around 4% of sales, Tesla hopes to gain a foothold despite infrastructure challenges.
Poor lane discipline, stray animals on roads, potholes, and limited charging networks remain significant hurdles for EV adoption in the country.