Tesla has introduced Tesla Model Y discount in India in January 2026 to address sluggish demand and clear unsold stock.
The EV giant imported around 300 Model Y units late in 2025, but nearly one-third (about 100 vehicles) remain unsold after four months.
These targeted offers provide up to ₹2 lakh (approximately $2,200) off on certain variants, particularly Standard Range models from 2025 shipments.
The discounts are not part of a widespread public promotion; instead, they are offered discreetly to direct customers and test-drive participants. This move highlights Tesla’s early struggles in India’s premium EV segment despite high anticipation for the brand.
Why Tesla Is Offering Discounts on Model Y in India
Tesla’s India entry began in July 2025 with the Model Y as its sole offering, but sales have been underwhelming. Key reasons include:
- High import duties on Completely Built Units (CBUs) -up to 110% for vehicles over $40,000 -inflating prices significantly.
- Cancellations from early reservation holders, leading to inventory buildup.
- Strong competition from rivals with locally assembled models offering better value.
In calendar year 2025, Tesla sold only 225 Model Y units. For comparison, BMW’s EV sales surged nearly 200% to around 3,700 units, while BYD achieved an 88% growth to 5,400 units in the same period.
Recent data shows just 16 registrations in the first half of January 2026, underscoring the need for these incentives to boost momentum.
Tesla Model Y Pricing and Variants in India 2026
The Tesla Model Y is available in two main variants (ex-showroom prices):
- Rear-Wheel Drive (RWD): ₹59.89 lakh
- Long Range RWD: ₹67.89 lakh
Due to 110% import duties on higher-value CBUs, on-road prices are much higher and vary by location:
- In Mumbai: Base model around ₹61.07 lakh on-road
- In Gurugram: Base model approximately ₹66.77 lakh on-road (higher due to Haryana’s lack of full EV road tax exemptions, unlike Delhi/Maharashtra)
With the current Tesla Model Y discount in India 2026, eligible buyers can reduce costs by up to ₹2 lakh, making it more competitive against locally assembled rivals like the BMW iX1 and BYD Sealion 7.
Competitive Landscape and Market Challenges
India’s EV market is growing rapidly, with total EV sales reaching millions in 2025 and government incentives driving adoption. However, Tesla faces unique hurdles:
- Premium pricing due to full imports (no local manufacturing yet).
- Limited brand visibility and high expectations not fully met.
- Competitors benefiting from lower duties on locally assembled vehicles and broader lineups.
Elon Musk has long viewed India as a major growth opportunity, but without a local plant, high tariffs continue to pose barriers. These discounts represent a practical short-term strategy to move stock and attract buyers.
What This Means for Buyers – Is Now the Time to Buy?
If you’re considering a Tesla Model Y in 2026, the ongoing discounts could be a timely advantage for premium EV shoppers in cities like Gurugram, Mumbai, or Delhi. Visit a Tesla showroom or schedule a test drive to check eligibility – these offers are targeted and may not last.
Also Read :January 2026 Car Discounts in India – Real Deals Worth Chasing Right Now