With a rapidly expanding electric vehicle market, India has become a fiercely competitive proving ground for both Tesla and BYD.
First reported by Business Insider, India is a vital market that determines the future earning potential for the leading EV manufacturers. As one of the world’s largest automotive markets, India has seen a surge in EV popularity in recent years.
In fact, Fortune Business Insights has forecasted that the EV market in India will be worth $114 billion by 2029. As a result, Tesla and BYD have each set their sights on establishing their EV presence in the country. However, each company has faced unique challenges that may limit its potential.
Tesla has faced a growing number of challenges throughout 2025. The company has reported a massive decrease in car sales in many key automotive marketplaces around the world. Despite this, Tesla still commands brand recognition that may offer a much-needed boost in a market like India.
Puneet Gupta, India automotive market director for S&P Global, broke down the outlook of each EV manufacturer and the effectiveness of their presence in India.
“Tesla is an inspirational brand for many Indian consumers. But if a brand like Tesla is coming in with two outlets, it shows that you are not interested too much in the business,” Gupta told Business Insider.
On the flipside, Gupta took a closer look at BYD’s sales performance despite trade roadblocks put in place. “When it comes to BYD, people are still buying them, in spite of a massive import duty,” Gupta explained. In September, BYD notched its 10,000th EV sale in India.
An import duty, commonly referred to as a tariff, is a tax imposed by a government on goods that cross its international borders. Its primary purpose is to regulate international trade and generate revenue for an importing country’s government. The higher the tariff, the higher the likelihood that the price of specific goods will increase for consumers. Ultimately, the quality of a product, such as an EV, will determine whether consumers are willing to overlook the increased cost.
“If the duty is reduced, then they can really rock the market because when it comes to Chinese players, they give you value, they give you features, they give you technology,” added Gupta.
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