Tesla Cuts Prices on Select Model Y Variants Amid Slow India Sales
Tesla has started offering discounts of up to ₹2 lakh on certain variants of its Model Y SUV in India, as the electric carmaker struggles to gain traction in the market. According to sources, the price cuts apply to specific imported units and come after Tesla found it difficult to sell a portion of the Model Y vehicles it brought into the country last year. Tesla did not respond to queries regarding the discounts.
Sales data shows Tesla sold about 16 electric vehicles in the first 15 days of January 2026, based on VAHAN registration figures as of January 15. In comparison, Chinese EV major BYD sold 83 vehicles during the same period. The weak start to January follows a stronger December for Tesla, when it sold 69 electric SUVs, though this still lagged behind BYD’s 249 registrations in the month.
Other luxury carmakers also reported mixed EV sales in December. Mercedes-Benz India recorded 70 EV registrations, down from 103 a year earlier, while BMW more than doubled its electric vehicle registrations to 351 units. Neither Tesla nor BYD currently manufactures cars in India. Despite the government unveiling a scheme to promote local EV manufacturing, Tesla has not signed up, while BYD faces regulatory hurdles linked to foreign investment restrictions.
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