Tesla is reportedly facing significant challenges in the Indian market, struggling to sell approximately a third of its initial import of Model Y SUVs. Around 100 out of an estimated 300 to 500 vehicles shipped to India last year remain unsold, prompting the company to offer discounts of up to ₹2,00,000 ($2,200) on certain variants to clear the inventory. This information was initially reported by Bloomberg and corroborated by multiple credible sources, including The Economic Times, Investing.com, and Business Today. The primary reasons for Tesla's slow uptake in India are attributed to the country's high import tariffs, which can reach 110% for fully built-up vehicles, making the Model Y's starting price around $68,000 to $70,000 significantly higher than in other markets. This pricing positions the Model Y against established luxury carmakers and more competitively priced electric vehicles from rivals like BYD (e.g., Sealion 7) and BMW (e.g., iX1), which offer comparable or better features at lower price points. Furthermore, the article highlights a lack of strong demand, with some prospective buyers who made early bookings reportedly backing out. This comes amidst a broader global slowdown in Tesla's sales. Despite government incentives for local manufacturing with reduced tariffs, Tesla has so far maintained a 'retail-first' strategy and has no immediate plans to establish manufacturing facilities in India. The company officially debuted in India in July 2025, with the Model Y as its sole offering. This situation signals an early hurdle for Tesla in cracking the world's third-largest passenger-vehicle market.