Slow sales force Tesla to offer discounts upto ₹2 lakh on Model Y: Bloomberg

Tesla has begun offering discounts silently on unsold Model Y SUVs in India after a slowdown in sales momentum.

Tesla has begun offering discounts on its Model Y SUVs in India after sales fell short of expectations, according to a Bloomberg report. People close to the matter say that Tesla imported around 300 Model Y units into India last year, but nearly a third of that inventory remains unsold several months later. To clear stock, the company is offering selective incentives of up to ₹2 lakh on certain vehicles, during customer interactions and test drives, rather than a formal price cut announcement.

The Tesla Model Y electric SUV has seen selective discounts after sales didn't meet expectations. (Parveen Kumar/HT)

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Incentives are targeted

The discounts are being offered on a case-by-case basis, indicating a tactical effort to move specific vehicles rather than a broad repricing of the Model Y. Tesla has not publicly acknowledged the incentives, and there has been no nationwide discount announcement.

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Premium pricing limits wider demand

Tesla entered India with a single, fully imported model, pushing prices close to ₹60 lakh once the import duties are applied. This has placed the Model Y firmly in the luxury segment, narrowing its appeal in a market where pricing and localisation play a critical role in buying decisions.

Bookings failing to convert

While early interest was strong, with several hundred bookings recorded, vehicle registrations have been far lower. Industry sources cited in the report said some prospective buyers reconsidered after comparing the Model Y with rival electric SUVs from brands such as BMW and BYD, which offer better pricing and stronger local support.

Cautious expansion strategy

Tesla has made recent leadership appointments to strengthen its India operations, signalling continued commitment despite the slow start. However, the decision to rely on discreet discounts rather than a public price revision reflects a calculated approach as the company works through its initial inventory.