Tesla Launches EMI Scheme for Model Y, Additional Offers for Luxury ICE Owners in India

Elon Musk-owned Tesla has started offering a new financing scheme for its Model Y in India, allowing customers to drive home the electric SUV with monthly EMIs starting at ₹49,000 and a down payment of ₹6,00,000, according to the company's official Instagram page. The luxury electric vehicle (EV) maker has been grappling with muted market response in India since its launch in July 2025. 

Tesla entered India with the Model Y, which is priced at an on-road ₹61,07,190 in Mumbai.

The offer is a step up plan which lets prospective buyers purchase the Tesla Model Y starting at ₹49,000 per month. Further savings is being offered by Tesla for premium/luxury ICE engine car owners of upto ₹20,000 per month in terms of fuel and maintenance cost switching to Tesla Model Y, ACKO Drive has learnt.

Buyers can also opt for Full Self-Driving (FSD) capability by paying an additional ₹6 lakh at the time of booking, while the Long Range Rear-Wheel Drive variant is priced at ₹69,15,190.

Import Duties

Model Y has been Tesla's sole offering in India, betting on brand appeal despite import duties of up to 110 per cent that pushed prices close to $70,000 (approximately ₹58 lakh). However, high acquisition costs, limited retail visibility and growing competition have slowed demand, with some early customers reportedly cancelling bookings after test drives.

Notably, tech billionaire Musk-owned EV maker's attempts to enter the Indian automotive market have spanned several years, marked by a narrative of lobbying for reduced import duties, speculation about a local factory, and shelved plans.

Sales in India

Official data show Tesla registered just 227 vehicles in India during 2025, underscoring the gap between initial interest and actual sales. The EMI-led approach reflects Tesla's attempt to ease upfront costs and attract buyers beyond early adopters in the premium EV segment.

Global Headwinds Add to Local Pressures

Tesla's India challenges come against the backdrop of broader global pressures. The company has reported a second consecutive annual decline in worldwide deliveries and has ceded its position as the world's largest EV seller to China's BYD.