Tesla has officially entered India with the launch of the Model Y, as well as its first Experience Centre in Mumbai. With Tesla’s strong global presence, sought-after sustainable ecosystem, and a growing appetite for electric vehicles in India, the American brand’s arrival could significantly reshape India’s EV landscape.
India’s EV market has been growing steadily, led by two-wheelers and a few first movers (read: Tata and MG) in the passenger car segment. As per FADA’s recent sales data for the passenger car market, EVs have shown notable growth in market share over the past year. In fact, the market share nearly doubled from 2.52 per cent in June 2024 to 4.43 per cent in June 2025. Although EVs currently represent a modest share of the market (4.43 per cent), the nearly 76 per cent year-on-year growth is a sign of rising consumer interest and industry momentum.
Speaking of consumers, Tesla is likely to have an impact on customer expectations. Despite not having an official presence until now, Tesla has had strong brand recognition, and we have been seeing a surprisingly positive perception. It is possibly because of multiple factors. Firstly, Tesla hasn’t evolved from ICE (Internal Combustion Engine) cars to EVs like legacy automakers. It started off as a pure electric brand, giving it a tech-forward, futuristic image from day one. The American marque has also built an aspirational brand image globally, similar to what Apple did in the tech space. It’s seen not just as a carmaker, but as an innovator. Tesla’s cult-like following has trickled into India through social media buzz and word-of-mouth.
India is one of the last major untapped markets for Tesla, and the company’s somewhat unique sales strategy, starting with a direct-to-consumer (D2C) sales model and limited but high-demand cities, suggests a long-term albeit bold move. All things considered, Tesla’s debut could serve as a catalyst, pushing the Indian EV market to work towards not just volume, but also quality, consumer expectations, and ecosystem maturity.
