Tesla Inc. faces challenges in India, struggling to sell about a third of the 300 Model Y SUVs imported last year, leaving roughly 100 vehicles unsold after four months. Early bookings have seen cancellations amid sluggish demand, prompting discounts up to 200,000 rupees ($2,217) on select variants to clear stock. This development underscores hurdles for EV adoption in the price-sensitive market.
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
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Around 100 Model Y SUVs remain unsold from initial 300-unit batch.
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Discounts reach 200,000 rupees ($2,217) on specific variants.
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2025 India sales totaled only 225 vehicles despite showroom openings.
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Import duties inflate prices to over 6 million rupees per unit.
Sources: Bloomberg News, Investing.com, Drive Tesla Canada