Tesla has introduced a new consumer incentive program in India titled ‘Switch and Save,’ designed to accelerate the adoption of its Model Y electric crossover. The initiative specifically targets owners of internal combustion engine (ICE) vehicles, offering a significant financial bridge for those transitioning to electric mobility. This strategic move comes as the manufacturer seeks to improve its performance in the Indian market, where initial sales have trailed behind internal projections.
Financial Incentives and Exchange Benefits
The primary highlight of the discount offer is a Rs 3 lakh exchange bonus available to customers who trade in a traditional petrol or diesel vehicle for a new Model Y. Beyond the trade-in credit, Tesla has structured a competitive financing package to attract premium buyers. The current offer includes:
- A 7-year loan tenure with an 8.5 percent Annual Percentage Rate (APR).
- A down payment requirement of Rs 6 lakh.
- Monthly installments (EMIs) starting at Rs 49,001.
These measures follow a previous tactical move in January 2026, where the company offered a flat Rs 2 lakh cash discount to clear unsold MY2025 inventory.
Market Context and Sales Performance
Despite the global prominence of the brand, the Model Y has faced a challenging reception in India. While the vehicle initially generated approximately 600 bookings, a substantial number of these were eventually retracted. Data from the Vahan portal indicates that Tesla registered only 263 units in the country through the end of January 2026. Industry observers attribute the slow momentum to the vehicle’s premium price point, a factor that has also contributed to a broader cooling of Tesla’s sales figures on an international scale. Notably, India is currently the only market where Tesla has deployed this specific exchange-bonus strategy.
Model Variants and Pricing Structure
The Tesla Model Y continues to be available in two configurations in the Indian market. Both variants are positioned within the luxury EV segment, featuring the brand’s signature minimalist interior and advanced software integration. The current ex-showroom pricing is as follows:
- Model Y Rear Wheel Drive: Rs 59.89 lakh
- Model Y Long Range Rear Wheel Drive: Rs 67.89 lakh
By offering a localized exchange program, Tesla aims to reposition the Model Y as a more competitive value proposition against established luxury rivals in the Indian automotive landscape.
