Tesla has launched the Model Y Premium RWD at ₹50.89 lakh after discontinuing two earlier variants.
The revised pricing puts the Model Y below the BMW iX1 and Mercedes-Benz CLA EV.
BMW remains the largest luxury EV seller in India, while Tesla continues to expand its presence.
Luxury EV Price Gap Narrows to ₹4 Lakh as Tesla Enters Fray
Tesla's ₹9 lakh price cut has brought its Model Y closer to BMW and Mercedes-Benz rivals, intensifying competition in India's premium electric vehicle segment
Summary
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Tesla has lowered the starting price of its Model Y electric SUV in India by ₹9 lakh, bringing its entry-level offering below rival electric vehicles (EVs) from BMW and Mercedes-Benz.
Tesla has introduced the Model Y Premium Rear-Wheel Drive (RWD) at ₹50.89 lakh (ex-showroom), replacing the outgoing Model Y RWD that was priced at ₹59.89 lakh. The company has also discontinued the Model Y Long Range RWD variant.
The move brings the entry-level electric offerings from Tesla, BMW and Mercedes-Benz within a relatively narrow price range, giving buyers more options in India's premium EV segment.
How The Prices Compare
The new Model Y Premium RWD is priced below the BMW iX1 Long Wheelbase, which starts at ₹51.40 lakh (ex-showroom), and the Mercedes-Benz CLA electric sedan, which is priced from ₹55 lakh (ex-showroom).
Tesla's latest variant offers a claimed WLTP-certified range of up to 500 km. The vehicle comes with seating for five occupants and up to 2,138 litres of cargo space. Deliveries are scheduled to begin in July 2026.
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The BMW iX1 is powered by a 66.4 kWh battery pack and delivers a claimed MIDC-certified range of up to 531 km. Mercedes-Benz's CLA 200 offers a claimed range of 542 km, while higher variants can travel up to 792 km under WLTP testing standards.
BMW Leads The Segment
Federation of Automobile Dealers Associations (FADA) data showed BMW's EV retail sales rose 124% year-on-year (YoY) to 3,537 units in FY26 from 1,580 units in FY25.
BMW has said the iX1 contributes more than 80% of its EV sales. The company also reported a luxury EV market share of more than 70% during the January-March 2026 quarter.
Mercedes-Benz retailed 1,047 EVs in FY26, down from 1,157 units in FY25, according to FADA data.
Tesla Expands India Presence
Tesla entered the Indian market in July 2025 with the opening of its first showroom and retailed 342 vehicles in FY26.
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Despite importing the Model Y as a completely built unit from China and attracting a 70% basic customs duty, Tesla has positioned its entry-level variant below the starting prices of both the BMW iX1 and Mercedes-Benz CLA.
The company has also been expanding its retail and charging network in India as it builds its presence in the country's electric vehicle market.