Tesla Struggles in India: Model Y Slumps, Targeted Discounts Launched to Clear Inventory

Tesla has had a rocky start in the Indian market, with around 100 of its initial batch of approximately 300 imported Model Y vehicles still unsold. Due to order cancellations from some reservation holders, Tesla is now offering targeted discounts of up to ₹200,000 (approximately RMB 15,500) on select Standard Range models—exclusively for test-drive participants and prospective buyers. The Model Y’s starting price in India is nearly $70,000 (about RMB 489,000), significantly higher than rivals such as the BMW iX1 and BYD Sealion 7. Although Tesla shipped a total of 500 units to India in 2024, only 227 were registered throughout the year. Meanwhile, BMW and BYD saw their electric vehicle sales in India surge by nearly 200% and 88%, respectively, highlighting Tesla’s challenges in the market—including low brand recognition, premium pricing, and delayed deliveries.