Tesla’s aggressive push into the Indian EV market just got a turbo boost. The American electric vehicle giant has rolled out price cuts of up to ₹2 lakh on select variants of its popular Model Y SUV, aiming to clear existing inventory amid rising competition and shifting demand. This move signals Tesla’s determination to capture a bigger slice of India’s burgeoning EV sector, where affordable options from Tata, Mahindra, and MG are heating up the race. For Indian buyers eyeing premium EVs, these discounts could make the Model Y more accessible than ever.
Tesla has indeed launched significant price re ll 0ductions on the Model Y in India, with cuts reaching up to ₹2 lakh on variants like the Long Range AWD. This strategic discount targets unsold stock from early imports, helping Tesla free up warehouse space while making the SUV competitively priced against rivals like the Hyundai Ioniq 5 or Kia EV6.
Why the Price Cuts Now?
India’s EV market exploded in 2025, with sales surging 45% year-on-year to over 2 million units, per FADA data. Tesla faces inventory pile-up after importing over 1,000 Model Y units via the CBU route, hit by high import duties (up to 100% on EVs under ₹40 lakh). Delays in local manufacturing—Gigafactory talks with Tata Group still ongoing—have left stock idle. Example: The base Model Y RWD, previously ₹65 lakh ex-showroom, now starts at ₹63 lakh, undercutting its original tag by ₹2 lakh.
These cuts mirror global trends; Tesla slashed U.S. prices by 20% in 2023 to combat softening demand. In India, rising competition from homegrown players like Tata Nexon EV (top-seller with 55,000+ units in 2025) forces Tesla’s hand. Fact: Model Y’s 534 km claimed range (ARAI) and 0-100 kmph in 5 seconds outpace most rivals, but at full price, it lagged behind budget EVs.
Breakdown of Discounts Across Variants
Here’s how the cuts shake out:
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Model Y RWD: ₹2 lakh off (now ~₹63 lakh). Ideal for city commuters with 455 km range.
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Model Y Long Range AWD: ₹1.5-2 lakh reduction (now ~₹70 lakh). Best for highways, offering 534 km and dual-motor punch.
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Model Y Performance: Up to ₹1 lakh cut (now ~₹75 lakh). Track-ready with 3.5-second 0-100 kmph.
Prices exclude road tax, insurance, and fast-charging setup (₹50,000+). Buyers in Delhi or Mumbai could save another ₹5-7 lakh via state EV subsidies. Real-world example: A Mumbai tech exec shared on X (formerly Twitter) snagging a Long Range for ₹68 lakh on-road post-discount—20% below launch price.
Model Y vs. Indian Rivals: A Quick Spec Battle
Tesla’s Model Y shines in tech but must prove value in India’s price-sensitive market. Key comparisons:
| Feature | Tesla Model Y (Long Range) | Tata Harrier EV | Mahindra XUV400 | MG ZS EV |
|---|---|---|---|---|
| Price (ex-showroom, post-cut) | ₹70 lakh | ₹24-30 lakh | ₹15-19 lakh | ₹19-25 lakh |
| Range (ARAI) | 534 km | 500 km | 456 km | 461 km |
| 0-100 kmph | 5 seconds | 7 seconds | 8.3 seconds | 8.5 seconds |
| Battery | 75 kWh | 65 kWh | 39 kWh | 50.3 kWh |
| Charging (DC Fast) | 250 kW (10-80% in 27 min) | 120 kW | 50 kW | 50 kW |
| Unique Edge | Autopilot, OTA updates | 5-star safety | Affordable | 7-year warranty |
Tesla wins on performance and software—like Full Self-Driving beta trials—but Indian EVs offer better service networks (Tata’s 1,000+ centers vs. Tesla’s 4 showrooms). December 2025 sales context: While Maruti Suzuki Ertiga topped 7-seater charts (18,000+ units) ahead of Mahindra Scorpio, Bolero, and Toyota Innova Crysta, EV sales tell a different story. Tata Punch EV led with 12,000 units, underscoring demand for sub-₹20 lakh options—Tesla’s cuts aim to bridge this gap.
Impact on India’s EV Landscape
These discounts could spike Tesla’s India volumes from 2025’s meager 5,000 units. Projections: Analysts at JM Financial predict 10,000+ Model Y sales in H1 2026 if cuts persist. Benefits for buyers include lower ownership costs—₹1-2/km vs. ₹8-10/km for ICE cars, plus zero emissions for green cred.
Challenges remain: Sparse Supercharger network (only 8 in India) frustrates long trips. Competitors like BYD Atto 3 (₹34 lakh) undercut on price, while policy shifts—like potential duty cuts to 15% for local assembly—could reshape the field. Fact: Tesla’s India entry via Mumbai showroom in 2025 drew 50,000 inquiries, per reports, but conversions were low at 10% due to pricing.
Buyer Tips and What’s Next
Act fast—inventory is limited to 500-700 units, per dealer whispers. Test drives available in Bengaluru, Delhi, Mumbai. Finance angles: 7-8% interest via ICICI or HDFC EV loans, EMIs ~₹1 lakh/month for top variant.
Tesla eyes local production by 2027, potentially dropping prices 30%. Watch for: Q1 2026 Cybertruck teases and Roadster hints. For your next EV hunt, compare total cost—Model Y’s 8-year battery warranty crushes rivals.
This price blitz positions Tesla as a premium disruptor in India’s EV boom, blending luxury with urgency.