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Tesla Faces Demand Slump in India, Rolls Out Select Discounts on Model Y
The Tesla Model Y is facing sales challenges in India. Due to lower-than-expected demand, the company is offering discounts of up to ₹2 lakh to select customers. One-third of the approximately 300 units imported last year remain unsold. The ₹60 lakh premium price and lack of local support are pushing customers toward alternatives like BMW and BYD, leading to low registrations despite bookings.
Only a short while ago, Tesla began experiencing some sales difficulties for its popular electric sport utility vehicle, the Model Y. According to a Bloomberg report, due to a lack of expected demand, Tesla is now offering discounts of up to ₹2 lakh to select customers. However, this discount is not an official price cut, but is being offered on a case-by-case basis during test drives and customer interactions.
Tesla started in the Indian market with only one model available in the lineup (Model Y), and that is also an imported model in the country. As per the report, when the import duties are considered, the price of Model Y goes around ₹60 lakh in the Indian market. It is to be noted that in the Indian market, price is a critical factor in buying a product or service, and this price may act as a major hindrance in the initial stages in the Indian market.
According to Bloomberg, Tesla's discount is not an open discount for every customer. This strategy suggests that the company is focusing on selling specific vehicles quickly rather than implementing a large-scale price reduction. This represents a tactical sales strategy, rather than a price change for the entire model.
Tesla launched in India with only one model (Model Y), and that too as a fully imported unit. According to the report, after import duties, the Model Y's price reaches approximately ₹60 lakh. This price pushes it directly into the luxury EV segment, limiting its customer base. In a market like India, where price and local support play a major role in purchasing, such premium pricing could be a major deterrent for many customers.
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According to the report, the Model Y received a good response initially, with hundreds of bookings recorded. However, vehicle registrations have been significantly lower. According to some reports, many potential customers reconsidered when they compared the Model Y to electric SUVs from companies like BMW and BYD. The report also stated that better pricing and strong local support in some alternatives may have swayed customers.
