Tesla's India Dream Hits Roadblock: High Prices, Low Sales Plague Model Y Launch
Cars
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News18•15-01-2026, 20:14
Tesla's India Dream Hits Roadblock: High Prices, Low Sales Plague Model Y Launch
- •Tesla entered the Indian market in 2025 but struggled to sell imported premium cars, with approximately one-third of its initial consignment remaining unsold.
- •Around 100 Model Y vehicles are unsold four months after 300 units were dispatched, leading to discounts of up to 2 lakh rupees on select variants.
- •High custom duties (up to 110%) on CBU imports significantly inflate Tesla's prices, making the Model Y, starting at 60 lakh rupees, uncompetitive.
- •Limited physical presence, few showrooms, and a sparse service network contribute to low brand visibility and customer trust issues.
- •Tesla's struggles contrast with India's booming EV market, where overall EV sales grew 16% and electric passenger car sales jumped 77% in 2025, led by local players like Tata Motors and JSW MG Motor.
Why It Matters: Tesla faces significant challenges in India due to high import duties, uncompetitive pricing, and limited local presence.
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