Tesla turns to discounts, explores new sales channels amid early setback in India

Tesla’s initial journey in India has proved challenging, as it struggles to find customers for its first and only car in local showrooms, the Model Y. Just six months into its arrival, it has had to resort to discounts to clear inventory, a move that contrasts sharply with the strong pre-launch hype.

A new report from Bloomberg says that Tesla imported as many as 500 units of the Model Y in 2025, just about 20 per cent of its originally planned volume of 2,500 units. Even so, it sold less than half of that volume by the end of the year.

Tesla had secured more than 800 orders by October, but it managed to register only 227 cars by the end of the year. Of the roughly 250 units still remaining in inventory, about 100 were from the first batch, which consisted of around 300 vehicles.

The company is offering discounts of up to 200,000 rupees (approx. 1,900 euros) on the roughly 100 units remaining from the first batch, though the markdowns are not part of any formal promotion. These are all units of the Standard Range RWD variant, which officially retails at 5.989 million rupees (approx. 56,800 euros). Tesla also offers the Long Range RWD variant in India, priced at 6.789 million rupees (approx. 64,400 euros).

The Model Y is quite expensive, and some potential buyers are switching to more affordable alternatives after taking test drives, like the BYD Sealion 7, for instance. Others are opting for established luxury brands, even if that means choosing smaller models such as the BMW iX1 Long Wheelbase. In this price segment, brand perception plays an important role, particularly for first-
time luxury car buyers, putting Tesla at a disadvantage against established brands. Its limited service network also remains a challenge, especially for customers living outside Delhi, Gurugram, and Mumbai.

Tesla offers the Model Y in India at three dealerships, one each in Delhi, Gurugram (Haryana), and Mumbai (Maharashtra), as well as online through its consumer website. The company recently began exploring new sales channels to reach more customers. In November, it held a pop-up experience inside a mall in Gurugram for about three weeks, showcasing a Stealth Grey Model Y.

On 15 January, Tesla opened a more comprehensive pop-up experience centre at a multi-brand car service facility operated by one of its insurance partners, Acko Drive, in Bengaluru (Karnataka). The company is showcasing multiple units of the Model Y in different colours and also offering test drives. It plans to run this event until 31 January and has secured multiple bookings on the first day.

*Prices exclude registration charges, insurance, 1% TCS, and Fastag

bloomberg.com, bloomberg.com (Original quota of 2,500 units), bloomberg.com (orders), x.com, x.com