KEY HIGHLIGHTS
- Tesla has introduced discounts of up to Rs 2 lakh on select Model Y variants in India
- Nearly 100 units from the first shipment remain unsold months after launch
- High import duties places the ex-showroom price at Rs 59.89 lakhs
Tesla's much-anticipated entry into the Indian market has hit an early hurdle. Less than half a year after the first batch of Tesla Model Y electric SUVs arrived in the country, the American EV giant has started offering notable discounts to stimulate demand. With inventory building up and competition intensifying, Tesla India is now recalibrating its pricing strategy to improve retail momentum. Read on to find out more details, but before that, make sure to join the 91wheels WhatsApp Community, specifically curated for petrolheads like us to keep up with the latest news and automotive updates.
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Tesla Model Y: Discounts Introduced To Clear Unsold Inventory
Tesla is currently offering price reductions of up to Rs 2 lakh on select variants of the Tesla Model Y in India. The move comes as a response to slower-than-expected sales since the vehicle's introduction. Of the roughly 300 units imported in the first shipment, close to a third are yet to find buyers, indicating a mismatch between initial interest and actual purchase conversions. Registration data further underlines the challenge. Through the entirety of 2025, Tesla registered only 227 vehicles in India, nearly equal to the size of its first consignment, highlighting the limited pace of deliveries and retail traction so far.
At its current price point, Tesla is no longer competing purely on brand appeal but is instead stacked against locally assembled luxury EVs that offer stronger value propositions. Rivals such as the BMW iX1, which is assembled in India, have gained ground thanks to lower ownership costs, better dealer reach, and competitive pricing. Meanwhile, BYD's Sealion 7 has emerged as a compelling alternative, combining long range and premium features at a more aggressive price. Reports also suggest that several potential Tesla buyers chose to walk away after test-driving competing models.
What This Means For Tesla's India Strategy
India was widely expected to serve as a key growth market for Tesla, but the brand's import-only approach appears to be limiting its reach. Recognising the need for course correction, Tesla has appointed Sharad Agarwal, former Lamborghini India head, to lead its local operations. However, without local manufacturing, a broader product portfolio, or sharper pricing, Tesla's position in India remains vulnerable. Not to forget the feirce competition that offers a far greater value for money, it is sure to have a rocky road in near future before the dust settles and Tesla Model Y finds its place in the market.
Verdict
The discounts on the Tesla Model Y signal an important reality check for the brand in India. While the Tesla badge continues to attract attention, sustained success in this market will depend on competitive pricing, stronger localisation, and a clearer long-term commitment. Until then, well-priced and locally assembled rivals are likely to continue gaining ground, making Tesla's next move in India crucial for its future prospects.
