To clear stock, the company is also offering discounts of up to ₹2,00,000 on select variants.Tesla has begun offering a new financing scheme for its Model Y in India, allowing customers to drive home the electric SUV with monthly EMIs starting at ₹49,000 and a down payment of ₹6,00,000, according to its official Instagram page.
Elon Musk-led luxury electric carmaker has been grappling with muted market response in India since its launch in July 2025.
Tesla entered India with the Model Y, which is priced at an on-road ₹61,07,190 in Mumbai. Customers can also opt for Full Self-Driving (FSD) capability by paying an additional ₹6 lakh at the time of booking, while the Long Range Rear-Wheel Drive variant is priced at ₹69,15,190.
Nearly a third of the roughly 300 Model Y vehicles imported last year remain unsold, according to media reports. To clear stock, the company is also offering discounts of up to ₹2,00,000 on select variants.
High prices weigh on demand
Model Y has been Tesla’s sole offering in India, betting on brand appeal despite import duties of up to 110 per cent that pushed prices close to $70,000. However, high acquisition costs, limited retail visibility and growing competition have slowed demand, with some early customers reportedly cancelling bookings after test drives.
Official data show Tesla registered just 227 vehicles in India during 2025, underscoring the gap between initial interest and actual sales. The EMI-led approach reflects Tesla’s attempt to ease upfront costs and attract buyers beyond early adopters in the premium EV segment.
Tesla’s India challenges come against the backdrop of broader global pressures. The company has reported a second consecutive annual decline in worldwide deliveries and has ceded its position as the world’s largest EV seller to China’s BYD.
Competition intensifies in premium EVs
Rivals such as BMW and BYD have gained traction in India through local assembly and sharper pricing. BMW’s EV sales surged nearly 200 per cent last year to around 3,700 units, while BYD registrations rose 88 per cent to over 5,400. Models like the BMW iX1 and BYD Sealion 7 are increasingly drawing buyers away from the Model Y. Tesla has appointed former Lamborghini India head Sharad Agarwal to steer local operations and deepen engagement with luxury-car customers. However, unlike competitors that have invested in local manufacturing and a broader portfolio, Tesla continues to operate in India through fully imported vehicles, keeping costs elevated.
