In the Indian electric vehicle (EV) race, the big surprise isn’t Tesla’s tepid sales, but the velocity of VinFast. Both global carmakers entered India as highly anticipated latecomers, but their trajectories couldn’t be more different. VinFast has hit the ground running with exponential growth, while Tesla is still searching for its footing.
Sales data sourced from industry bodies proves this. Since deliveries commenced in September 2025, Tesla has sold just 383 EVs. In contrast, Vietnam’s VinFast has sold nearly 10 times more, clocking 3,568 units during the same period.
The question for the EV industry, therefore, is not “Why is Tesla yet to arrive?”, but “What can Tesla learn from VinFast?”
The first lesson is localisation – VinFast understood that India rewards local manufacturing, and built a plant at a 400-acre facility in Thoothukudi, Tamil Nadu. This step allowed VinFast to bypass high import tariffs and aggressively price its cars: the VF6 (Rs 17.29 lakh), VF7 (Rs 21.89 lakh), and the VF MPV 7 (Rs 24.49 lakh).
Tesla, however, relied on an import strategy, and brought the Model Y – the world’s best-selling car – close to a hefty Rs 60 lakh.
“Tesla’s delayed India entry eroded the novelty factor the brand rides on globally,” said Gaurav Vangaal, associate director, Light Vehicle Forecasting, S&P Global Mobility. “The Model Y is a state-of-the-art car, but the launch landed in a market that had evolved. By the time Tesla opened its Mumbai centre in July 2025, the BMW iX1 had established itself in the premium EV space, followed by competitive offerings from Mercedes-Benz, Volvo, and BYD. The combination of CBU-led premium pricing, a Supercharger network still in single digits, and the prior arrival of well-equipped rivals muted the impact the Tesla brand would have otherwise had.”
Pricing Mismatch
The second lesson is value-for-money models. Tesla’s import approach inflated the price of the Model Y, positioning it in a segment where buyers expect a chauffeur-driven luxury car such as a Mercedes-Benz or a BMW rather than a self-driven, tech-heavy masterpiece. VinFast, however, was able to keep its cars – also tech masterpieces – in the Rs 20-25 lakh range.
An industry analyst pointed out the structural mismatch: “The volume EV market is in the Rs 15-30 lakh space where carmakers like Mahindra and VinFast are making a killing. Mahindra, in fact, sold a massive 32,092 EVs in the same eight-month window when Tesla sold barely 1% of that number.”
VinFast’s leadership anticipated this. Pham Sanh Chau, the CEO of Vingroup Asia – the parent brand of VinFast – told this newspaper that India is a ruthlessly value-driven market, regardless of global hype. “Brand name alone is insufficient if infrastructure, localised pricing, and after-sales support aren’t aligned with the Indian consumer’s expectations,” Chau said.
Vangaal agrees that the deeper learning here is about the mindset of the Indian buyer. “Even in the Rs 45 lakh and above segment, the buyer is value-conscious, regardless of how aspirational the brand is. For Tesla to build meaningful volumes, the next phase will need to include made-in-India cars positioned closer to where the Indian EV demand actually sits, supported by a wider charging footprint.”
Infrastructure Gap
The third lesson is that being late doesn’t matter if you have the right strategy. Tesla is horribly late, no doubt, and back in 2017, replying to Elon Musk’s tweet “India commits to sell only electric cars by 2030 …”, Mahindra & Mahindra chairman Anand Mahindra responded: “… Elon. You don’t want to leave the whole market to Mahindra, do you?”
In July 2025, when Tesla finally opened its first experience centre in Mumbai, Mahindra tweeted a welcoming, albeit confident: “Looking forward to seeing you at the charging station.”
A year later, Mahindra’s confidence seems well-founded. Tesla simply hasn’t built the infrastructure to match its brand aura, operating just five Superchargers nationwide.
VinFast, which was not even born when the famous Musk tweet happened – Musk tweeted in July 2017, and VinFast was born in September 2017 – has proven that being late doesn’t matter if you have the right strategy.
But Tesla is showing signs of learning. The April 2026 launch of the Model Y L (6-seater), priced at Rs 61.99 lakh, is a pivot towards India’s chauffeur-driven culture in the Rs 50-lakh-plus segment, but until it learns the first lesson – localisation – and enters the mass-EV segment, it will likely remain a boutique carmaker, even as companies like VinFast capture the market.
