Tesla is ramping up its efforts in India with a new initiative designed to encourage traditional car buyers to make the switch to electric vehicles. According to a recent report from Drive Tesla Canada, the automaker has introduced a new Model Y “Switch & Save” trade-in offer and attractive financing options in an effort to kickstart sales in one of the world’s most challenging EV markets.
The Tesla EV Switch & Save Program offers customers up to 300,000 INR (approximately $3,300) when they trade in a gasoline-powered vehicle, in addition to the vehicle’s current trade-in value. This bonus can be applied towards the purchase of a Tesla Model Y Rear-Wheel Drive, which is currently the only Tesla model available for purchase 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.
In addition to the trade-in incentives, Tesla has introduced a new financing plan to make it easier for customers to afford an electric vehicle. Buyers can now drive away with a down payment of 600,000 INR and monthly payments starting at 49,000 INR. As an added bonus, Tesla is including a free Wall Connector with every purchase, providing new owners with a convenient home charging solution at no extra cost.
These initiatives mark a renewed effort by Tesla to gain traction in the Indian market, where high import duties have resulted in significantly higher prices for its vehicles compared to other regions. Despite opening showrooms in Mumbai and New Delhi last year, as well as an all-in-one Tesla Center in Gurugram, the company has faced challenges in generating demand since deliveries began in September. However, with the introduction of these new incentives, Tesla is demonstrating its commitment to overcoming obstacles and expanding its presence in India.
By targeting owners of traditional internal combustion engine vehicles and offering compelling discounts and financing options, Tesla is testing whether price sensitivity plays a larger role than brand awareness in the Indian market. The success of this strategy remains to be seen, but with the Switch & Save program running until the end of March, Tesla is confident that a combination of cash incentives, easier financing, and home charging benefits will help drive adoption of electric vehicles in the world’s most populous country.