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Tesla Offers Targeted Model Y Discounts in India to Clear Unsold Inventory

Steep import duties on fully built imports pushed prices toward luxury territory, constraining demand.

Overview

  • About 100 of roughly 300 Model Y SUVs shipped in late 2025 remain unsold four months after arrival, according to reports citing people familiar with the matter.
  • Discounts of up to ₹200,000 are being offered on select Standard Range units and are communicated directly to customers and test‑drive prospects rather than through a nationwide campaign.
  • Official registration data show only 225–227 Teslas recorded in 2025 versus roughly 600 early bookings, indicating cancellations and slow conversions.
  • The Model Y starts near $70,000 in India because import duties can reach 110%, following Tesla’s choice to import fully built vehicles instead of using a concessional scheme tied to local manufacturing.
  • Competitors are gaining ground, with BMW’s India EV sales rising nearly 200% to around 3,700 in 2025 and BYD registrations exceeding 5,400, while Tesla logged 16 sales in January 1–15 versus BYD’s 83.