Tesla India offers discount on Model Y amid weak demand
What's the story
Tesla is facing a tough time selling its electric cars in India. The company has struggled to sell nearly a third of the initial batch of imported EVs, with around 100 vehicles still looking for buyers. In an effort to clear this unsold stock, Tesla is offering discounts of up to ₹2 lakh on certain variants of its Model Y SUV.
Discount details
Discounts only for select Model Y variants
The discount offer is applicable on select Model Y Standard Range vehicles imported last year. However, it is not a nationwide campaign but a strategy to directly target customers and test-drive seekers. This move comes as Tesla tries to establish itself in the world's third-largest car market with one of its more affordable entry-level models.
Market challenges
Tesla's global sales and competition
Tesla's global sales have declined for the second consecutive year, losing its position as the top seller of EVs to China's BYD. The company faces stiff competition and reduced subsidies in some markets. In India, car buyers are yet to warm up to the brand due to lack of visibility and high prices.
Pricing strategy
Tesla's Model Y pricing and market response
The EV maker currently sells only the Model Y in India, starting at nearly ₹60 lakh. However, it has received only some 600 bookings for this model. A large chunk of these orders are yet to be converted into deliveries. Many buyers who had initially booked the more affordable and shorter-range Model Y are now hesitant to finalize their purchases.