Big Discounts On Tesla Model Y SUVs In India, What’s Behind It?

When Tesla finally entered India, many car lovers and EV fans were excited as it is one of the world’s most famous electric car brands and is led by billionaire Elon Musk. However, just a few months after

its debut, Tesla’s India journey has hit an early speed bump and the company is now offering big discounts on unsold Model Y SUVs.

Tesla’s Slow Start In India

Tesla began selling its Model Y in India in July 2025 which is considered its most affordable SUV globally. To kick-start operations, Tesla imported around 300 Model Y SUVs from China, but according to people familiar with the situation, nearly around 100 vehicles are still unsold.

According to Bloomberg, to clear this inventory, Tesla is now offering discounts of up to Rs 2 lakh on certain Model Y variants, but these discounts are not being advertised openly across India. Instead, they are being offered directly to customers who enquire, take test drives or show interest in buying this SUV.

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High Prices, High Expectations

One of Tesla’s biggest challenges in India is pricing as the Model Y is currently priced at around Rs 58-60 lakh in India and this is because imported cars attract heavy taxes with duties going up to 110%.

Bookings Vs Reality

According to Bloomberg, September reports said Tesla had received around 600 bookings for the Model Y, however, many of these bookings have not turned into actual deliveries. Some customers reportedly backed out after test drives, while others chose competing luxury EVs that were either cheaper or better suited to Indian requirements. Official data underlines this gap clearly as Tesla registered only 227 cars in India in 2025, which is a surprisingly low number for such a globally popular brand.

Global and Local Pressure

In 2025, Tesla’s worldwide sales dropped for the second year consecutively, which allowed China’s BYD to overtake it as the world’s largest EV seller. Also, reduced government subsidies and rising competition have affected Tesla in major markets like the US, Europe, and China.