Image: Tesla
Tesla is making a fresh push in India with a new incentive program aimed at nudging traditional car buyers toward electric vehicles. According to a report from Drive Tesla Canada, the automaker has launched a new Model Y “Switch & Save” trade-in offer alongside attractive financing options, as it looks to jumpstart sales in one of the world’s toughest EV markets.
Dubbed the Tesla EV Switch & Save Program, the promotion offers buyers up to 300,000 INR (roughly $3,300) when they trade in a fossil-fuel-powered vehicle, on top of the vehicle’s existing trade-in value. The bonus is applied toward the purchase of a Tesla Model Y Rear-Wheel Drive, currently the only Tesla sold in India. Customers who complete their trade-in through Spinny, Tesla’s local partner platform, can also receive an additional 25,000 INR in exchange bonuses.
To further lower the barrier to entry, Tesla has also rolled out a new financing plan that can be combined with the trade-in incentives. Under the new offer, buyers can drive away with a down payment of 600,000 INR and monthly payments starting at 49,000 INR. Tesla is also bundling in a free Wall Connector, giving new owners a home charging solution at no extra cost.
The moves signal a renewed effort by Tesla to gain traction in India, where high import duties have made its vehicles significantly more expensive than in other markets. The Model Y starts at nearly 6,000,000 INR, and Tesla reportedly sold just 225 vehicles in the country in 2025. While the company opened its first Indian showrooms in Mumbai and New Delhi last year, alongside an all-in-one Tesla Center in Gurugram, early demand has been muted since deliveries began in September.
Still, the new incentives suggest Tesla isn’t backing down. By directly targeting owners of internal combustion engine vehicles and offering aggressive discounts and financing, Tesla appears to be testing whether price sensitivity — rather than brand awareness — is the main obstacle in India.
Whether the strategy pays off remains to be seen, but with the Switch & Save program running through the end of March, Tesla is clearly betting that a combination of cash incentives, easier financing, and home charging perks can finally move the needle in the world’s most populous country.
