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Tesla has begun offering price cuts of up to Rs. 2 lakh on select variants of the Model Y to clear existing inventory in India
Tesla India has hit its first visible speed bump with the company now resorting to discounts on the Model Y to address mounting inventory and slower retail. Nearly four months after Tesla imported its first consignment of Model Y SUVs into India, a significant portion of that inventory remains unsold. Of the 300 vehicles brought in as part of the initial shipment, close to 100 units are still sitting in stock.
To accelerate movement, Tesla has begun offering price cuts of up to Rs. 2 lakh on select variants of the Model Y. The inventory situation is reflected clearly in registration data. Across the entirety of 2025, Tesla managed to register just 227 vehicles in India – barely matching the size of its first shipment that is brought in.
While the launch generated curiosity and showroom footfalls, actual conversions have been limited, particularly after customers experienced the product alongside competing options. With import duties going as high as 110 per cent, the Model Y’s effective price in India climbs close to Rs. 70 lakh on-road approximately. At this level, Tesla finds itself competing not just on brand appeal but directly against locally assembled luxury EVs.
They offer more features, better dealer support and lower ownership costs. Reports suggest several early buyers chose to cancel bookings after test drives once they compared alternatives. The BMW iX1, assembled locally, has gained traction as a more accessible luxury EV while BYD’s Sealion 7 has emerged as a value-based alternative with aggressive pricing.
The German manufacturer’s electric vehicle volumes in India jumped nearly 200 per cent in 2025 to around 3,700 units while BYD registrations rose 88 per cent to over 5,400 vehicles. Tesla, on the other hand, has now reported two consecutive years of declining worldwide deliveries and has ceded its position as the world’s largest EV seller to China’s BYD.
Expectations that India could act as a fresh growth market have so far been tempered by a cautious and import-led model. In an effort to recalibrate, Tesla has appointed Sharad Agarwal, former Lamborghini India head, to lead its local operations. However, without local manufacturing, wider model availability or a competitive price ladder, Tesla’s India operations remain exposed.
Source: Bloomberg
The post Tesla India Slashes Model Y Prices As Inventory Piles Up & Rivals Gain Ground appeared first on Gaadiwaadi.com - Latest Car & Bike News by Surendhar M.
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