EV maker Tesla (TSLA) is reportedly gearing up to launch a new, large version of its Model Y L SUV in the world’s most populous country, India next week to kickstart sluggish sales.
Tesla, which reports Q1 earnings next week, is said to be ready to unveil a new version of its electric SUV in India, to boost sluggish sales in the country. It will be its first new product launch in India.
The Model Y L is a six-seat, long-wheelbase vehicle that made its global debut in China last year, but the Indian variant is understood to have a three-row seating layout for families seeking more space than the standard five-seat Model Y, which Tesla began selling in India last July.
Tesla will hope the new launch will spark more interest in the vast country with a population of 1.5 billion people. According to figures from Bloomberg, Tesla registered a pitiful 225 cars in India for the whole of 2025. This forced the Elon Musk-led group into offering discounts of up to 200,000 rupees, or about $2,200, on certain versions of the SUV in order to move inventory. Notably, these discounts were offered directly to shoppers and test-drive customers rather than through a public nationwide promotion.
The Indian passenger car market is certainly one Tesla will be keen to capture. It is expected to grow from $41.34 billion in 2025 to $63.84 billion by 2031. That will be driven by increased incomes and more demand from younger, more digitally and sustainably savvy customers.
But, it is a tough market to crack. Tesla, like other overseas car makers has to cope with Indian regulations, which impose tariffs of between 70% and 110% on imported cars. The competition in India is also tough with drivers seeking out cheaper or better-equipped alternatives from the likes of BMW (BAMXF) or Chinese group BYD (BYDDF).
On TipRanks, TSLA has a Hold consensus based on 13 Buy, 11 Hold and 6 Sell ratings. Its highest price target is $600. TSLA stock’s consensus price target is $401.13, implying a 3.14% upside.
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