Tesla’s long-awaited India entry is running into its first real test. Four months after the company shipped its first batch of Model Y electric SUVs into the country,
a chunk of those cars is still waiting for buyers.
For a brand that thrives on hype and early adopters, this is not the start many expected.
I went to the Tesla showroom yesterday in my city and found it empty.. to my surprise they are also offering some discounts !!
Has this car completely failed in India ? Is it because at this price point (60-75L) there are no self driving folks ?
— Alok Jain ⚡ (@WeekendInvestng) January 14, 2026
Unsold cars and early discounts
As per a Bloomberg report, Tesla imported around 300 Model Y units into India last year. Roughly a third of that batch, close to 100 cars, is yet to find buyers even after four months. Some early customers have backed out after placing initial bookings.
To move inventory, Tesla is offering discounts of up to INR 2 lakh on select Model Y variants. This is unusual for a brand known for holding prices firm, especially during launch phases.
The Model Y was meant to be Tesla’s volume play in India. Instead, it is quickly becoming a lesson in market reality.
Why the Model Y is struggling
The biggest hurdle is price. Imported electric cars attract duties that can touch 110 percent. That pushes the Model Y far beyond what many Indian buyers expected, even in the luxury segment.
Brand awareness is another issue. Tesla has presence in headlines, not on roads. No local factory. Limited showrooms. No mass charging network branded with the Tesla logo. For Indian buyers who like to see before they buy, this matters.
Global slowdown adds pressure
Tesla’s India challenge is also playing out against a tough global backdrop. Worldwide sales fell again in 2025, marking the second straight year of decline. China’s BYD has already overtaken Tesla as the world’s top EV seller.
In markets like the US, Europe, and China, competition has grown and subsidies have shrunk. India is entering this picture at a difficult time.
To strengthen its local play, Tesla hiredSharad Agarwal, former head of Lamborghini India, in November. The goal is clear. Target luxury buyers and rebuild confidence.
India loves electric cars, but it loves value more. Tesla’s badge alone may not be enough. For now, the Model Y is parked, both literally and figuratively, at a crossroads.
