Tesla has slowed shortly after its entry into India's luxury electric vehicle (EV) market.

The US carmaker's recent performance trails BMW and Mercedes-Benz, according to data from the Government's Vahan portal.

Since September, when the company began selling its sole vehicle, the Model EY electric SUV, in India, Tesla has experienced a comparatively slower start.

BMW India recorded higher EV volumes during this period, and the iX1 SUV, the main rival to Tesla's EY, maintained a consistent presence in the market.

Mercedes-Benz also reported EV activity during the same period. The company's EQS model, regarded as Tesla's primary competitor, continued to contribute to its overall EV portfolio.

BMW holds a larger share of the accessible end of the luxury EV segment through the iX1, while Mercedes-Benz has recorded stronger activity in the upper tier.

Tesla's early performance contrasts with its initial plans for India, which included considerations for a domestic manufacturing facility, and its present position in the market.

India's broader electric-car market grew by 57% in the first eleven months of 2025, according to Vahan data. Growth in the charging network, increased vehicle range, and a wider model portfolio have contributed to higher EV adoption.

A significant share of this growth is associated with mass-market manufacturers such as Tata Motors and JSW MG Motor India, whose pricing and product offerings have attracted more buyers towards EVs.

State-level incentives and lower running costs compared with petrol or diesel vehicles have supported the shift, creating conditions for premium brands to increase their presence.

Hardeep Singh Brar, President and CEO of BMW Group India, stated that EVs now account for nearly a fifth of the company's total sales. "We are seeing very good adoption of electric cars among our customers," he said.