Tesla’s much-hyped entry into the Indian market has fallen flat, with Model Y sales trailing expectations.
The Elon Musk-led US electric vehicle maker is struggling to move its initial inventory, with nearly a third of the cars imported last year still unsold. Of the first batch of 300 units brought into the country, around 100 vehicles are yet to find buyers, according to media reports.
To clear the stock, Tesla is now offering discounts of up to ₹2 lakh on select variants.
The Model Y is sold in India in two versions — RWD and Long Range RWD — priced at ₹59.89 lakh and ₹67.89 lakh (ex-showroom), respectively. Being imported as a completely built unit, the model attracts a steep import duty of 110 percent, making it significantly more expensive than locally assembled rivals.
The impact of this pricing disadvantage is evident in sales numbers. Tesla sold just 227 units of the Model Y in 2025. In comparison, competitors such as BMW and BYD, which assemble vehicles locally, have seen far stronger traction. BMW’s electric vehicle sales jumped 200 percent to about 3,700 units, while BYD recorded an 88 percent rise, selling around 5,400 units during the year.
The sluggish response underscores the challenges Tesla faces in India’s price-sensitive market, especially without local manufacturing.