Why Tesla’s Model Y Demand Is Softening in India

Tesla’s presence in the Indian automotive market, initiated in July with showrooms in Mumbai and Delhi, is showing signs of demand normalization. The company sold 40 units of its Model Y SUV in October 2025, a 37.5% reduction from September, bringing its total sales to 104 units. This dip contrasts with the broader Indian EV market’s expansion, which saw a 17.78% month-on-month growth in October. The premium pricing of the Model Y, a result of steep import duties on its CBU status, is a likely contributor to the cooling demand. With prices starting at Rs 59.89 lakh for the RWD Standard and Rs 67.89 lakh for the Long Range RWD, the Model Y competes directly with luxury electric vehicles from Mercedes-Benz and BMW. Despite the price challenge, the Model Y delivers impressive performance, a driving range of up to 622 km, and a technologically advanced interior, including a 15.4-inch central touchscreen and advanced driver-assist systems.