Tesla India Offers Discounts on Model Y After Selling Just 200 Cars in India

Tesla Inc is offering discounts on its cars in India after sales remained slower than expected following its market entry last year, according to a Bloomberg report.

The electric vehicle maker is struggling to sell about one-third of the cars it initially brought into the country. Tesla had shipped around 300 Model Y SUVs to India last year, but nearly 100 vehicles remain unsold even after four months.

To move the unsold stock, Tesla is reportedly offering discounts of up to ₹2 lakh on select Model Y Standard Range variants. The discounts are being offered directly to customers who visit showrooms or take test drives, rather than through a public nationwide promotion.

Tesla officially debuted in India in July, positioning the Model Y as its entry-level offering in the country. Despite strong brand recognition globally, sales have remained limited in India. The company registered only 227 cars in India in the whole of 2025, highlighting the gap between early interest and actual purchases, according to official vehicle registration data cited by Bloomberg.

Tesla had received around 600 bookings for the Model Y in India by September, however, many of these bookings have not converted into final deliveries, earlier reports stated.

Tesla currently sells only the Model Y in India, with prices starting at nearly $70,000, mainly due to high import duties that can go up to 110% on fully imported cars.

Customers have reportedly chosen rivals such as BMW’s iX1, which is priced lower, or BYD’s Sealion 7, which offers more features at a competitive price point.

Notably, to strengthen its India operations, Tesla appointed Sharad Agarwal, former head of Lamborghini India, in November to lead its local business and attract luxury-car buyers.

However, Bloomberg noted that Tesla’s challenges in India mirror its global slowdown, with the company facing declining sales worldwide and increased competition from Chinese EV makers like BYD.