When Tesla finally began delivering cars in India, there was a lot of curiosity and excitement around the brand. People wanted to see how a global EV giant would fit into the Indian premium car space. A few months later, the picture is more realistic. Tesla is now offering discounts on the Model Y, mainly to clear cars that have not found buyers yet.
Tesla brought near to 300 Model Y units into India by the end of 2025. However, official registration figures indicate that only around 226 to 227 cars were actually sold during the year. This left roughly 100 vehicles unsold at dealerships. To move this inventory, Tesla is offering discounts up to Rs 2 Lakh on select Model Y Standard Range variants.
These discounts are not being advertised loudly. They are largely being sold to customers who have already expressed their interest, taken test drives or made early bookings. The focus is on MY2025 cars, in particular the Standard Range version which is finished in Stealth Grey with a black interior.
Some key details around the Model Y in India
- Standard Range price is Rs 59.89 lakh ex-showroom with claimed 500 km range
- Long Range RWD costs Rs 67.89 lakh and claims up to 622 km range
- All cars are fully imported
- Deliveries started in September 2025
One of the key challenges Tesla is currently dealing with is conversion. Bookings crossed 1,200 units, but a lot of early deposits did not translate into final sales. Buyers who had experienced the car frequently compared it with other options and then backed off.
Strong rivals are playing a big role here. The locally assembled BMW iX1 starts from around Rs 49.90 lakh and saw a big jump in sales last year. BYD Sealion 7 is even more aggressive about pricing, and has a richer cabin feel, which many buyers prefer at this price point.
Another factor is the lack of Tesla’s presence. Right now, the brand has a few touchpoints, including a showroom in Delhi Aerocity and a sales and service outlet in Gurgaon. There is no local manufacturing either, despite government incentives that offer lower import duty for companies willing to assemble cars in India.
Globally too, Tesla is facing pressure. The company saw sales decline for the second year in a row in 2025 and lost its position as the top EV seller to BYD. India is not an isolated case.
Tesla does plan to grow its lineup later with the Model 3, followed by the Model S and Model X. But for the moment the focus is clearly on stabilising the Model Y rollout.
Conclusion
The Tesla Model Y remains a strong product, but pricing, competition, and limited reach have slowed down the momentum of the Model Y in India. The current discounts are indicative of Tesla adapting to market reality. How the brand responds next will determine if this is only a slow start or if there is a bigger challenge on the horizon.