From Hype to Heavy Discounts: Tesla's Indian Inventory Woes

Tesla shipped around 300 Model Y vehicles from its Shanghai factory to India in late 2025, marking a key step in its market entry after opening showrooms in Mumbai and New Delhi. However, demand has fallen short, with total 2025 sales estimated at just 225 units across the year, far below initial targets of 2,500. High import duties of up to 100% have priced the Model Y above 6 million rupees ($68,000), positioning it as a luxury item in a market where EVs hold only 4% share and average prices are much lower.

 

Prospective buyers who reserved early have backed out, citing concerns over charging infrastructure limited to major cities and long-term service support. Tesla now offers steep discounts on certain rear-wheel-drive and long-range variants to attract buyers, a rare move for the brand amid global sales pressures.

 

Key Highlights

Sources: Bloomberg News, Investing.com, Drive Tesla Canada