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New Delhi: In order to clear their unsold inventory from MY2025, Tesla India have offered a discount of up to Rs 2 lakh on their only car sold in India, the Model Y, limited to the Standard Range trim in Stealth Grey with an all-black interior, which is priced at Rs 59.89 lakh (ex-showroom). Of course, as is often the case, the discount only lasts until the stock lasts.
This comes just six months after the launch of the Tesla Model Y, which had gotten 600 bookings early on and is sold here in import. Still, according to a Bloomberg India report, citing people who are aware of the issue, have said some prospective customers who had made the early bookings have backed out since then.
The report further noted that Tesla, led by Elon Musk, had brought about 300 units of the Model Y, but subdued demand has meant that close to 100 vehicles are yet to be sold. Registration data from Vahan shows that Tesla sold 226 Model Ys in calendar year 2025, highlighting the disconnect between initial interest and actual conversion.
This slowdown is not limited to India alone as Tesla have globally struggled in sales, with volumes falling for the second consecutive year in 2025, allowing rival BYD to move ahead. Increased competition and the gradual withdrawal of incentives in important markets have affected Tesla’s market share across the US, Europe and China.
One of the key reasons cited for the sluggish performance in India is Tesla’s silent market entry. The brand’s arrival last year was delayed and much more low-profile, without any major promotional push. It almost lacked the promotional energy from the brand, as one might have hoped in a big market like India.
Further, Tesla was unable to secure import duty relief, resulting in their cars being subject to levies as high as 110 per cent. Along with a limited showroom footprint, these factors have contributed to the slow pace of sales.
