As showrooms across India are witnessing rising electric vehicle buzz, two global EV giants, Tesla and VinFast, found themselves on the same road but on very different gears.
Both automakers arrived at a time when India’s EV market is entering its next growth phase. October 2025 alone saw record retail volumes across segments, driven by festive demand, new launches, and wider availability of charging networks.
Data available on Vahan dashboard suggests that the Vietnamese automaker VinFast, a relative newcomer, is cruising more smoothly on Indian roads than its more established American rival, which continues to take a slower route into one of the world’s fastest-growing electric markets.
Two entrants, two strategies
Tesla’s India journey has been years in the making. After multiple rounds of talks with the government over import duties and local manufacturing, the company finally entered the market in mid-2025, delivering its first batch of Model Y vehicles through private imports. Priced between ₹59.89 lakh and ₹67.89 lakh (ex-showroom), Tesla began its India innings from the premium end, targeting affluent buyers in metros like Mumbai and Delhi.
However, the response has been muted. Official Vahan data shows Tesla registering 118 vehicles in 2025 so far with only 40 in October, a rather slow start for the world’s largest EV brand.
VinFast, in contrast, made a decisive debut earlier in January 2025 at the Bharat Mobility expo, marking its first international foray outside Southeast Asia. Its VF 6 and VF 7 SUVs, launched on September 6, priced between ₹16.49 lakh and ₹25.49 lakh, were launched with a clear intent: to capture India’s fast-growing mid-range EV segment.
The company sold 131 units in October alone, according to the Vahan portal, and has registered 204 vehicles this year. VinFast’s early entry gave it an edge in local visibility and brand familiarity, further strengthened by its Tamil Nadu factory project and plans for 35 showrooms across 27 cities by the end of 2025.
Festive season momentum and market surge
October 2025 proved to be a record month for India’s EV market, with sales expanding across all categories. Federation of Automobile Dealers Association (FADA) data shows the electric passenger vehicle (PV) segment posting a robust 57.5 per cent year-on-year jump, clocking 18,055 units compared with 11,464 units in October 2023.
Tata Motors led the pack with 7,239 units, followed by JSW MG Motor (4,549 units) and Mahindra & Mahindra (3,911 units). While the two- and three-wheeler categories saw modest gains, up 2.6 per cent and 5.1 per cent, respectively, the commercial EV segment more than doubled, growing 105.9 per cent year-on-year to 1,767 units.
For VinFast, the festive uptick came at the perfect moment, helping its brand visibility and showroom footfall. Tesla, by contrast, continues to operate in limited circles in India, with its presence currently confined to Mumbai and Delhi. The company began delivering its Model Y SUVs in mid-2025 through private import channels and has yet to commence local assembly or establish a full-scale retail network.
In June, the Union government, too, had confirmed that the Elon Musk-led company is not to be interested in manufacturing in India, which rolled out a lucrative electric vehicle policy last year to attract global auto giants to one of the biggest car markets. “Tesla only wants to open showrooms and sell imported cars,” said Heavy Industries Minister Kumaraswamy. The EV giant is unlikely to manufacture vehicles in the country anytime soon, he said.
With global pedigree and local realities, who’s driving smoother?
Globally, Tesla remains the face of the EV revolution. In the third quarter of 2025, it delivered nearly 497,000 vehicles and posted a 12 per cent rise in revenue to $28.1 billion, driven by strong sales in the U.S. and China.
Yet, its India playbook remains cautious, constrained by import duties of up to 70 per cent, limited service networks, and ongoing localisation talks.
VinFast, meanwhile, is using India as a testbed for its global expansion. With an assembly plant under development and a fast-developing dealer network, the company has focused on adapting to India’s middle-market realities, balancing affordability, performance, and visibility.
For now, VinFast appears to have the early advantage, accelerating with a clear, localised strategy. Tesla, while still the global benchmark for innovation, is idling in a niche space, its brand prestige yet to convert into strong volumes.
Other automakers ramping up the India EV playbook
Amid the Tesla-VinFast duel, several other automakers are accelerating their India EV strategies. For example:
- Hyundai Motor India Ltd. aims to boost local sourcing of EV components and ramp up fast-charging infrastructure — plans to increase public chargers from ~100 to 600 over the next seven years.
- Maruti Suzuki India Ltd., India’s largest automaker, will roll out its first EV, the e-Vitara, and has announced major investments in new production lines despite supply-chain setbacks.
- Global luxury and volume brands such as Kia and Mercedes‑Benz are expressing interest in manufacturing EVs in India under the government’s EV policy framework.
- Indian industrial house JSW Group is planning its own EV brand and manufacturing venture, signalling rising domestic competition from non-traditional players.
Changing tax roadmap may alter EV edge
Adding to this is the new GST reform rolled out on 22 September 2025, which has trimmed rates for internal-combustion engine (ICE) vehicles, small cars now attract 18 per cent GST, down from 28 per cent plus cess, while larger vehicles fall to simplified slabs around 40 per cent.
EVs continue to enjoy 5 per cent GST and exemption from compensation cess, but the narrower tax gap could erode their price advantage.
