Tesla Model Y Entry Price Reduced By Rs 9 Lakhs in India

Tesla Inc has set its foot in India via the CBU route from Shanghai plant in China with the launch of Model Y in the country. The American EV giant has been operating four dealerships in the country at Mumbai, Bengaluru, Delhi and Gurugram. Tesla recently expanded the lineup to incorporate Model Y L.

After the launch of Model Y L, Tesla India has rejigged the variants of Model Y. This has made Model Y more affordable by Rs 9 lakh on its Ex-sh pricing and this leaves the electric SUV with just a single variant, going forward, as the Model Y Premium Long Range Rear Wheel Drive variant has been discontinued. Model Y is now positioned below Model Y L in the overall lineup.

Tesla Model Y Variant Rejig

When the Tesla Model Y L was first launched in India last month, it raised quite a few eyebrows in the country. That is because Model Y L Premium All Wheel Drive variant was launched at Rs 61.99 lakh (Ex-sh). However, the smaller, slower, less equipped, less range, one motor short Model Y Premium Long Range Rear Wheel Drive was priced at Rs 67.89 lakh (Ex-sh).

Within a month, Tesla India has discontinued Model Y Premium Long Range Rear Wheel Drive variant and reduced the price of Model Y Premium Rear Wheel Drive variant by Rs 9 lakh, as it now costs Rs 50.89 lakh (Ex-sh). The company is calling it a new variant and has given it a ‘2026’ tag.

As per Tesla India, the new variant gets an all-black interior with a fully blacked out headliner and premium trim for a more premium and immersive driving experience. Tesla is offering Model Y Premium Rear Wheel Drive variant with a downpayment of Rs 6,00,000 and an EMI starting at Rs 3,99,901.

Lower Costs Promised

The press release mentioned that Model Y Premium Rear Wheel Drive buyers can achieve Rs 2,00,002 savings every month in fuel and maintenance alone (when compared to an ICE vehicle). The press release also mentioned that Model Y Premium Rear Wheel Drive offers mid-size SUV and sedan owners an opportunity to upgrade to a Tesla with an effective ownership cost of Rs 19,990 per month.

Home charging has been provided and Tesla will continue to invest in comprehensive public charging solutions too. 2026 Model Y Premium Rear Wheel Drive variant comes with a 16-inch front infotainment screen, an option for Zen Grey interior, seating for up to five adults, power folding seats, an exhilarating performance with 0-100 km/h under 5.9 seconds and a 500 km promised range. Deliveries will start in July 2026.

Statement from Tesla

“Tesla’s mission is to build a world of amazing abundance. Tesla enables the use of electric vehicles by increasing the accessibility of Tesla technology and providing charging solutions around people’s lifestyles. Tesla will keep investing in the country to create a seamless EV experience in India, with more retail coverage, after-sales services and charging locations are coming soon” – Ms. Isabel Fan, Senior Director, Tesla.