According to a news report, Tesla is struggling to sell a large number of the cars it brought to India last year. The report said that about one-third of the first batch is still unsold as many early buyers have cancelled their bookings.
The report stated that Tesla shipped around 300 Model Y SUVs to India, but nearly 100 vehicles are still without buyers even after four months. To clear this stock, the company is offering discounts of up to Rs 2 lakh on select variants.
The report described this as an early setback for Tesla in the world’s third-largest car market. The company entered India in July and depended on its brand image to attract customers despite import duties going up to 110 per cent.
It added that Tesla has not responded to queries on the discounts or the rising inventory.
The news report also noted that Tesla is facing weak demand globally. Its worldwide sales fell again in 2025, pushing it behind China’s BYD as the top electric vehicle seller.
The report said that rising competition and lower subsidies in the US, Europe and China have affected Tesla’s market share. In India, buyers are still cautious because of high prices and limited awareness of the brand. To boost operations, Tesla appointed former Lamborghini India head Sharad Agarwal to lead its local business in November.
According to the report, many customers drop out after test drives, choosing cheaper or better-equipped rivals such as BMW’s iX1 and BYD’s Sealion 7, both priced below the Model Y.
The discounts, the report said, are being offered privately to selected customers and not through a nationwide campaign. Tesla currently sells only the Model Y in India, with prices starting at nearly $70,000.
The report further stated that Tesla received about 600 bookings, but a large number are yet to turn into deliveries. Although up to 500 cars were shipped last year, only 227 were registered across India in 2025.
It also pointed out that many buyers are now reluctant to complete purchases of the shorter-range version, while even the longer-range model is selling slower than expected.
The report added that Tesla’s India entry followed Elon Musk’s meeting with Prime Minister Narendra Modi in the US in February last year.
Finally, the report compared Tesla’s slow start with its rivals, noting that BMW India sold about 3,700 vehicles last year, while BYD saw registrations rise 88 per cent to over 5,400 cars.
