Tesla's India entry may not disrupt PV market in near term

Tesla's entry into the Indian market is unlikely to disrupt the existing electric passenger vehicle (PV) segment in the near term, but the US automaker has strong potential to emerge as a key player in the coming years.

- Arshad Khan @New Delhi

"While the premium EV segment remains niche, it is growing rapidly, driven by India's rising millionaire population and their appetite for high-tech vehicles," said Puneet Gupta, director of India & ASEAN auto market at S&P Global Mobility.

Industry data shows luxury EV sales surged 66% year-on-year between January and May 2025. These vehicles account for 11% of total luxury car sales, up from 7% in the same period last year.