Tesla has introduced a new trade-in and financing promotion for its Model Y in India, as the U.S. electric vehicle maker seeks to stimulate demand in a market where sales have remained limited since its entry last year.
Under the newly announced Tesla EV Switch & Save Program, buyers who trade in an internal combustion engine vehicle can receive an incentive of up to 300,000 rupees ($3,300), in addition to the residual value of their existing car. The offer applies to purchases of the Tesla Model Y Rear-Wheel Drive and is available until the end of March, according to details published by the company.
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Tesla said the trade-in process can be completed through Spinny, an Indian used-car platform, which offers an additional exchange bonus of 25,000 rupees. The automaker is also pairing the trade-in programme with a new financing plan that allows customers to purchase the Model Y with a down payment of 600,000 rupees and monthly instalments starting at 49,000 rupees. A home Wall Connector charger is included at no additional cost.
The Model Y is currently priced from 5.99 million rupees in India, making it significantly more expensive than in many other markets due to high import duties. Tesla sold about 225 vehicles in India in 2025, according to industry data, reflecting the challenges faced by premium electric vehicles in the price-sensitive market.
See also: Tesla Expands India Charging Network With Third Hub in Gurugram
Tesla began offering the Model Y in India in July 2025 and started customer deliveries in September after opening its first showrooms in Mumbai and New Delhi. The company also launched its first Supercharger station in Mumbai’s Bandra Kurla Complex in August, coinciding with its official market entry.
Last year, Tesla opened its first fully integrated Tesla Centre in Gurugram, combining sales, service, deliveries and charging infrastructure at a single site. The company has said India remains a long-term opportunity, despite near-term headwinds.
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Electric vehicles currently account for about 4% of passenger car sales in India, the world’s third-largest auto market. Analysts say that while incentives such as trade-in bonuses and financing may help broaden appeal, pricing and local manufacturing will likely be key factors in determining Tesla’s longer-term prospects in the country.
Source: DriveTesla
