Tesla reportedly struggles to sell Model Y SUVs in India

Tesla is struggling to sell a large portion of the Model Y SUVs it imported to India in 2025, with about 100 vehicles remaining unsold four months after shipment, according to sources cited by Bloomberg.

The company is offering discounts of up to 200,000 rupees (US$2,200) on certain Model Y variants to clear inventory, but these offers are limited to select customers and are not part of a nationwide promotion.

Tesla registered only 227 cars in India in 2025, despite earlier reports of around 600 bookings and up to 500 imported units.

The Model Y, priced at nearly US$70,000 in India, faces stiff competition from cheaper and feature-rich alternatives such as BMW’s iX1 and BYD’s Sealion 7.

High prices and limited local presence have slowed Tesla’s sales, while rivals like BMW and BYD have seen strong growth in India’s expanding EV market.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Tesla pricing hints at no duty cut

The Model Y’s US$70,000 sticker likely means Tesla skipped the March 2024 EV policy’s concessional import window that cuts duties to 15% for firms committing US$500 million to local manufacturing 1. The scheme allows up to 8,000 cars a year at that rate 2. The company has not informed the government under it and canceled Elon Musk’s April visit 3.
Without the duty break, Tesla pays full import tariffs that push prices above BMW’s iX1 and BYD’s Sealion 7. 227 registrations against roughly 600 bookings signal price pushback. Focus remains on showrooms 1.

Fintechs spark demand with EV financing bundles at the US$70,000 tier

EV financing in India remains thin, with higher rates, lower loan-to-value ratios, and tighter eligibility than internal combustion engine (ICE) loans 4. Better financing links to faster EV uptake in commercial fleets 4, but premium imports still face affordability gaps.
Non-Banking Financial Companies (NBFCs) plus fintech firms can bundle leasing, charging subscriptions, and residual value guarantees (a promise to buy back or ensure a minimum resale price) to cut ownership cost at US$70,000. EV leasing in India is growing 34.97% compound annual growth rate (CAGR) as fleets scale with volume contracts and captive financing (in-house lending arms) 5. Third-party lenders can bring that model to affluent buyers and help original equipment manufacturers (OEMs) move inventory 4. They can tap green finance plus Environmental, Social, and Governance (ESG)-linked capital for longer terms at lower rates 4.