Asia’s Billion-Strong Nation Welcomes VinFast and Tesla Simultaneously, but Is the American Giant Falling Behind?

As showrooms across India witness a surge in electric vehicle demand, two global EV players—Tesla and VinFast—are entering the market but in starkly different ways.

Both automakers arrive as India’s EV market enters its next growth phase. October 2025 alone saw record retail sales across segments, driven by festive demand, new models, and an expanding charging network.

Data shows Vietnam’s VinFast is gaining more traction in India, contrasting with its American counterpart, which is taking a slower approach in one of the world’s fastest-growing EV markets.

Two Brands, Two Strategies

Tesla’s journey to India has spanned years. After multiple rounds of negotiations with the government over import taxes and local production, the company finally entered the market in mid-2025, delivering the first batch of Model Y vehicles through private imports. Priced between 59.89 and 67.89 lakh rupees (approximately $78,000 to $88,000), Tesla started in the premium segment, targeting wealthy customers in major cities like Mumbai and Delhi.

However, the response has been modest. Official data reveals Tesla has only 118 registered vehicles so far in 2025, with just 40 in October—a slow start for the world’s largest EV brand.

In contrast, VinFast made a bold debut in January 2025 at the Bharat Mobility Expo, marking its first international expansion outside Southeast Asia. The VF 6 and VF 7 SUVs launched on September 6th, priced between 16.49 and 25.49 lakh rupees (approximately $21,500 to $33,200)—clearly targeting India’s fast-growing mid-range EV segment.

The company sold 131 vehicles in October alone and 204 in total this year. Its early entry has given VinFast a brand recognition edge, further strengthened by its Tamil Nadu factory and plans to open 35 showrooms in 27 cities by year-end.

India’s EV Boom

October 2025 was a record month for India’s EV market, with sales surging across all segments. Official data shows a 57.5% year-on-year increase, with 18,055 units sold compared to 11,464 in October 2023.

Tata Motors led with 7,239 units, followed by JSW MG Motor (4,549) and Mahindra & Mahindra (3,911). While two- and three-wheelers saw modest growth of 2.6% and 5.1%, commercial EVs more than doubled, rising 105.9% to 1,767 units.

For VinFast, the festive season boom came at the perfect time, boosting brand visibility and showroom footfall. Tesla, however, remains limited, primarily operating in Mumbai and Delhi. The company began delivering the Model Y in mid-year through private imports and has yet to establish local assembly or a full retail network.

In June, the Indian government confirmed Tesla no longer seeks a local manufacturing base, despite attractive EV policies to lure major players. Heavy Industries Minister Kumaraswamy stated, “Tesla only wants to open showrooms and sell imported vehicles.”

He believes Tesla’s chances of local production in the near future are slim.

Globally, Tesla remains an icon of the EV revolution. In Q3 2025, it delivered nearly 497,000 vehicles and reported 12% revenue growth to $28.1 billion, driven by strong sales in the US and China.

However, its India strategy is far more cautious, hindered by 70% import taxes, a limited service network, and stalled localization talks.

VinFast, meanwhile, is leveraging India as a strategic market in its global expansion. With an operational assembly plant and a growing dealership network, the company is tailoring its offerings to India’s middle-class demands—balancing affordability and performance.

Currently, VinFast appears to have the early advantage with its clear strategy and local production. Tesla, despite its global innovation reputation, remains a niche player, struggling to translate its brand into strong Indian sales.