Tesla is facing a slow start in India, with nearly a third of the vehicles it imported last year yet to find buyers, signalling early challenges for the US electric-car maker in the world’s third-largest passenger-vehicle market.
About 100 units from an initial shipment of roughly 300 Model Y sport utility vehicles remain unsold four months after their arrival, people familiar with the matter told Bloomberg. To clear inventory, Tesla is offering discounts of up to ₹2,00,000 ($2,200) on select variants, they said, requesting anonymity as the details are not public.
The Elon Musk-led company entered India in July with the Model Y as its sole offering, betting on brand appeal despite import duties of as much as 110 per cent that pushed prices close to $70,000. However, high costs and limited visibility have dampened demand, with some early customers withdrawing bookings after test drives.
Global headwinds for Tesla
Tesla registered only 227 vehicles in India during 2025, official data show, underscoring the gap between initial interest and actual sales. The company is also contending with global headwinds, having reported a second consecutive annual decline in worldwide deliveries, slipping behind China’s BYD as the largest EV seller.
Competition in India is intensifying. Buyers are increasingly opting for alternatives such as BMW’s locally assembled iX1 or BYD’s Sealion 7, both priced below the Model Y and offering more features. BMW’s India sales of EVs surged nearly 200 per cent last year to about 3,700 units, while BYD registrations rose 88 per cent to over 5,400.
Tesla has hired former Lamborghini India head Sharad Agarwal to steer local operations and court luxury-car customers. Yet the company’s cautious rollout contrasts with the stronger momentum enjoyed by rivals that have invested in local assembly and broader price points.
Tesla did not respond to Bloomberg’s request for comment on discounts or inventory levels in India.
