Tesla reportedly struggling to offload inventory in India amid cancellations

Investing.com -- Tesla Inc. is having difficulty selling about one-third of the initial vehicles it imported to India last year, as many early reservation holders have canceled their orders, according to a Bloomberg report Wednesday.

Around 100 vehicles remain unsold four months after Tesla shipped approximately 300 Model Y sport utility vehicles to India. To help move this inventory, the company is currently offering discounts of up to 200,000 rupees ($2,217) on certain Model Y variants.

This slow start in India comes as Tesla faces declining global demand. The company’s worldwide sales dropped in 2025 for the second straight year, allowing Chinese competitor BYD Co. to once again overtake it as the world’s top-selling electric vehicle manufacturer.

Tesla entered the Indian market in July, hoping its brand recognition would drive sales despite local import taxes reaching 110% for foreign-made cars. The Model Y is currently Tesla’s only offering in India, with prices starting at nearly $70,000, placing it in competition with established luxury automakers in the country.

While Tesla received approximately 600 bookings for the Model Y in India as reported by Bloomberg in September, a large portion of these reservations have not yet been converted to actual deliveries. The company imported as many as 500 cars to India in 2025, with the first shipments arriving from Shanghai in early September.

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