What is the story about?
Elon Musk-owned Tesla was thought to bring a wave of new tech in automobile industry. When in entered India, the expectations were quite high. However, it turned out the hype was only until its first batch came to the nation.
The trend concerning Tesla in India took a U-turn as the company faces challenges selling its imported EVs. Bloomberg reported that Tesla is under pressure as its one-third of the first batch is still sitting inside the showroom.
Now to boost the sale, Tesla is offering attractive discounts on select models.
Sluggish demand has left roughly 100 Model Y SUVs unsold almost four months after Tesla imported around 300 units into India, according to people familiar with the matter, cited by Bloomberg.
To clear stock, the company is reportedly offering discreet discounts of up to Rs 2,00,000 on select Model Y variants, approaching potential buyers individually rather than announcing a formal nationwide offer.
The lukewarm response highlights the contrast between Tesla’s global brand appeal and the challenging realities of the Indian car market.
Tesla’s long-anticipated India debut has so far revolved around a single model — the Model Y. Priced from nearly $70,000, the SUV sits at the top end of India’s electric vehicle market, far beyond the price range of most locally available EVs. While Tesla initially secured around 600 bookings, Bloomberg reported, many of those reservations have yet to materialise into confirmed sales.
Official figures underscore the sluggish progress. Bloomberg reports that Tesla registered only 227 vehicles in India throughout 2025, a modest number that reflects weaker-than-expected follow-through from early buyers.
Sources familiar with the company’s rollout said that a large share of customers who paid deposits are now reluctant to finalise purchases, particularly for the shorter-range Model Y.
Interest in the long-range variant remains stronger, but deliveries have been slow, adding to unsold stock and dampening early momentum.
The underwhelming start stands in sharp contrast to India’s booming electric vehicle sector. According to data from the Federation of Automobile Dealers Associations (FADA), total EV retail sales surged 16.37 oer cent year-on-year to reach 2.27 million units in 2025, fuelled by a remarkable 77 per cent jump in electric passenger car sales.
Mass-market brands such as Tata Motors and JSW MG Motor India continue to dominate the space, appealing to price-conscious buyers with affordable models and expanding after-sales support.
Against this backdrop, Tesla’s premium pricing strategy and limited local presence appear out of step with the realities of the Indian market. Despite its global brand prestige, the company faces the challenge of winning over buyers who are now spoilt for choice in an increasingly competitive EV landscape.
The trend concerning Tesla in India took a U-turn as the company faces challenges selling its imported EVs. Bloomberg reported that Tesla is under pressure as its one-third of the first batch is still sitting inside the showroom.
Now to boost the sale, Tesla is offering attractive discounts on select models.
Tesla discounts to boost sales
Sluggish demand has left roughly 100 Model Y SUVs unsold almost four months after Tesla imported around 300 units into India, according to people familiar with the matter, cited by Bloomberg.
To clear stock, the company is reportedly offering discreet discounts of up to Rs 2,00,000 on select Model Y variants, approaching potential buyers individually rather than announcing a formal nationwide offer.
The lukewarm response highlights the contrast between Tesla’s global brand appeal and the challenging realities of the Indian car market.
Why the slow conversions?
Tesla’s long-anticipated India debut has so far revolved around a single model — the Model Y. Priced from nearly $70,000, the SUV sits at the top end of India’s electric vehicle market, far beyond the price range of most locally available EVs. While Tesla initially secured around 600 bookings, Bloomberg reported, many of those reservations have yet to materialise into confirmed sales.
Official figures underscore the sluggish progress. Bloomberg reports that Tesla registered only 227 vehicles in India throughout 2025, a modest number that reflects weaker-than-expected follow-through from early buyers.
Sources familiar with the company’s rollout said that a large share of customers who paid deposits are now reluctant to finalise purchases, particularly for the shorter-range Model Y.
Interest in the long-range variant remains stronger, but deliveries have been slow, adding to unsold stock and dampening early momentum.
The underwhelming start stands in sharp contrast to India’s booming electric vehicle sector. According to data from the Federation of Automobile Dealers Associations (FADA), total EV retail sales surged 16.37 oer cent year-on-year to reach 2.27 million units in 2025, fuelled by a remarkable 77 per cent jump in electric passenger car sales.
Mass-market brands such as Tata Motors and JSW MG Motor India continue to dominate the space, appealing to price-conscious buyers with affordable models and expanding after-sales support.
Against this backdrop, Tesla’s premium pricing strategy and limited local presence appear out of step with the realities of the Indian market. Despite its global brand prestige, the company faces the challenge of winning over buyers who are now spoilt for choice in an increasingly competitive EV landscape.
