Core Insights - Tesla's entry into the Indian market with the Model Y SUV has faced significant challenges, leading to targeted discounts to manage excess inventory [1][11] Group 1: Inventory and Sales Performance - After launching in mid-2025, Tesla imported approximately 300 Model Y units to India, with nearly one-third remaining unsold months later [2] - To address the inventory issue, Tesla is offering discounts of up to Rs 2 lakh ($2,200) on select Model Y variants, indicating a tactical approach rather than a broad promotional campaign [2] - Reports indicate that only about 227 Tesla vehicles were registered in India throughout 2025, falling short of earlier expectations of nearly 600 bookings, with many early reservations canceled [4] Group 2: Pricing and Market Position - The Model Y is priced between Rs 60-68 lakhs ex-showroom, significantly impacted by India's 110% import tariff on completely built units (CBUs), making it less competitive against locally assembled vehicles [3][5] - The high pricing, starting near US$70,000 after import duties, has led to muted demand, as many Indian buyers find the imported electric SUV prohibitively expensive [4][5] Group 3: Strategic Approach - Tesla has no immediate plans to manufacture vehicles locally in India and continues to rely on imports, despite the Indian government's incentives for local production [6][7] - The company is pursuing a "retail-first" strategy, expanding showrooms and service hubs in major cities while building its Supercharger network [6] Group 4: Competitive Landscape - Competition is intensifying as legacy automakers and global EV brands introduce more affordable, locally assembled offerings, diminishing the appeal of the Model Y for aspirational buyers [8] - BYD Co. has achieved over 10,000 electric vehicle deliveries in India, establishing a strong presence with a diverse portfolio [9] - Mercedes-Benz has also strengthened its EV presence, selling approximately 19,000 cars in 2025, with a 12% year-over-year growth in battery electric vehicle sales [10]

According to a Bloomberg report, Tesla is struggling to sell roughly a third of the initial batch of vehicles it imported into India last year. Sluggish demand left around 100 Model Y sport utility vehicles unsold nearly four months after the company shipped about 300 units into the country, people familiar with the matter told Bloomberg. To reduce inventory, Tesla is offering discounts of up to Rs 2,00,000 on select Model Y variants, though these offers are being made quietly to individual customers rathe ...