Overpriced SUV Finally Gets Cheaper After 6 Months of Its Launch! » MotorOctane

When Tesla first arrived in India, people went nuts over it. The hype felt unreal. Showrooms saw heavy footfall, online searches spiked, and expectations were sky high. But now that the initial buzz has settled and people have started weighing prices and alternatives, the mood has turned out more cautious. And now after just 6 months of their entry, Tesla is forced to take this step to protect their only product in the Indian market. Let’s have a look at which product is it and what has changed.
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Discount Offered In The First 6 Months

Despite strong brand recognisition in the global market, Tesla’s performance in India has been modest so far. So to counter the negative response, Tesla has now introduced a discount of Rs. 2 lakh on the only product that they have in the Indian market.

As per the reports, Tesla sold only around 227 units of the Model Y in India in 2025. Out of the initial 300 units, around 100 units are yet to find their buyers. The slow pace highlights a serious gap between the brand and its audience.

Even in January 2026, the numbers haven’t changed much either. Last year, Tesla managed to sell just 64 units in September, 40 in October, 48 in November, and 73 in December. While on the other hand, its rival, BYD clocked 249 registrations in December itself, with 88% sales growth in 2025 (5400 units) . The difference feels quite large when discussed in the Indian automobile market context.

Also Read: After Losing Top Spot, Hyundai Creta Gets Massive Discount!

Is It Really Worth It?

The Tesla Model Y is sold in India as a completely built unit (CBU). This means that they import the whole unit which attracts steep import duty of 110%, pushing the price higher than other rivals in our market.

The Tesla Model Y is currently offered with a rear-wheel-drive powertrain in India. The RWD variant is priced at Rs. 63.08 lakh (on-road Mumbai), while the Long Range RWD costs Rs. 71.71 lakh (on-road Mumbai). The price segment makes the Tesla Model Y sit firmly in the premium segment competing with cars like the BMW iX1, BYD Seal, Mercedes-Benz EQB, Kia EV6, MG Cyberstar, etc.

The Indian EV market has intensified rapidly in the past few years. And with brands offering best-in-class features even in the entry level EVs, the buyers are now exposed to multiple options at best deals. Hence, the discount imposed by Tesla appears as a strategic move, but temporary in nature.

The Rs. 2 lakh discount may help spark fresh interest amongst new audience and people who were considering a premium EV. But for the mass market, Tesla still has a long way to go. While the Model Y still carries the global appeal and technology, Tesla’s long term succes in India will highly depend upon the prices and how quickly they adpat to the Indian market.