Tesla’s entry into the Indian market is expected to increase the country’s imports of electric vehicles (EVs), but a Moneycontrol analysis shows that China had already established a firm foothold before the US carmaker’s arrival.

The Austin, Texas-headquartered company, which announced its first store in India on July 15, will be shipping cars from its Shanghai factory.

In FY25, China accounted for 61.1 percent of the nearly 10,000 electric vehicles imported by India, up sharply from 22.8 percent the previous year. Imports from China have surged nearly 20-fold over the last four years—from just 332 vehicles—to dominate the Indian imported EV landscape.

Germany, which was India’s top import source until FY24 with a 40 percent market share, saw its part of the pie decline to 27.8 percent in FY25. However, in terms of value, Germany still leads, accounting for $118 million out of the total $244.2 million worth of EV imports. 

Tesla’s entry is poised to alter the average import value. Germany’s average import price was $44,320 per car—nearly four times higher than the average Chinese EV, priced at $12,627. South Korea, another key EV exporter, shipped 647 vehicles to India with an average value of $37,295.

Tesla has launched only its Model Y—pricier than its entry-level Model 3— in India so far, with a base model price of over $70,000 or about Rs 60 lakh.

Despite the hype, Tesla’s footprint in India will likely remain limited, forming a negligible share of its global sales of nearly 2 million units.

India’s import market is also becoming increasingly concentrated. The top three exporters—China, Germany and South Korea—accounted for 95.7 percent of EV imports in FY25, up from 75 percent a year ago.

Luxury EVs continue to be a niche segment in India. A prior Moneycontrol analysis found that high-end EVs made up just 6.6 percent—or 5,926 units—of the 90,354 EVs sold in 2024.