(Reuters) – TESLA has received orders for more than 600 vehicles since launching sales in India in mid-July, a number that has lowered the company’s own expectations.
Bloomberg News said the Elon Musk-led electric car maker now plans to ship 350 to 500 vehicles to India this year, with the first of which will land from Shanghai in early September.
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The report said delivery will initially be limited to Mumbai, Delhi, Pune and Gurugram, adding that the scale of the goods is based on the full payment it receives for the car and the company’s ability to deliver outside the four cities with physical presence.
Reuters was unable to confirm the report immediately. Tesla did not immediately respond to Reuters’ request for comment.
In July, Tesla launched the Y Model Y car in India for about $70,000, a price that reflects the country’s high tariffs on imported electric vehicles. U.S. electric car manufacturers have long lobbyed India to reduce tariffs on imports of cars.
Facing overcapacity and sales declines in factories around the world, Tesla has adopted a strategy of selling imported vehicles in India despite its responsibilities and taxes.
It is estimated that starting in the third quarter, the automaker is targeting a niche for the domestic auto market, with electric vehicles accounting for only 4% of overall sales.
Despite improvements in road infrastructure in India, traffic discipline (such as lane driving) remains basic, with few EV chargers and stray animals (including cattle and potholes on the road) are also a big obstacle, even in cities.
(Reported by Nilutpal Timsina in Bangalore; Editor of Sonia Cheema)
