Dreaming of a Tesla? Model Y now costs ₹49,000/month
What's the story
In a bid to boost sales in India, Tesla has introduced a new financing scheme for its popular Model Y. The scheme allows customers to drive home the electric SUV with monthly EMIs starting at ₹49,000 and an initial down payment of ₹6 lakh. The move comes as part of Tesla's strategy to tackle the muted market response since its launch in July 2025.
Pricing details
Tesla's Model Y pricing and additional features
Tesla's Model Y is priced at ₹61,07,190 (on-road) in Mumbai. The Long Range Rear-Wheel Drive variant costs ₹69,15,190. Customers can also opt for Full Self-Driving (FSD) capability by paying an additional ₹6 lakh at the time of booking. Despite the high prices due to import duties of up to 110%, Tesla has relied on brand appeal for its sole offering in India.
Sales challenges
Tesla's sales performance and stock clearance efforts
Despite its premium EV segment offerings, Tesla has struggled with demand in India. Official data shows the company registered just 227 vehicles in 2025, highlighting the gap between initial interest and actual sales. Nearly a third of the some 300 Model Y cars imported last year remain unsold. To clear its stock, Tesla is also offering discounts of up to ₹2 lakh on select variants.
Market competition
Competition and global pressures on Tesla
The premium EV segment in India is getting crowded with players like BMW and BYD. These companies have gained traction through local assembly and competitive pricing. BMW's EV sales surged nearly 200% last year to around 3,700 units, while BYD registrations rose 88% to over 5,400. Models like the BMW iX1 and BYD Sealion 7 are increasingly drawing buyers away from the Model Y.
Strategic moves
Tesla's response to market challenges in India
To counter these challenges, Tesla has appointed Sharad Agarwal, former head of Lamborghini India, to lead its local operations and engage with luxury-car customers. However, unlike its competitors who have invested in local manufacturing and a wider portfolio, Tesla continues to operate in India through fully imported vehicles. This strategy keeps costs high but is part of the company's broader global strategy amid declining worldwide deliveries and increased competition from China's BYD.