Tesla cuts Model Y price by ₹9 lakh in India.
New Model Y Premium RWD launched at ₹50.89 lakh.
Price revision aims to boost India sales and market expansion.
Tesla has significantly lowered the price of its best-selling electric SUV in India, cutting the cost of the Model Y by ₹9 lakh as the company recalibrates its strategy in one of the world's most price-sensitive automobile markets.
The EV maker on Thursday introduced the new Model Y Premium Rear-Wheel Drive (RWD) at ₹50.89 lakh (ex-showroom), replacing the outgoing Model Y RWD, which was priced at ₹59.89 lakh. Tesla has also discontinued the Model Y Long Range RWD variant that carried a price tag of ₹67.89 lakh.
1 May 2026
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The move effectively reduces the entry point to Tesla ownership in India by ₹9 lakh and marks one of the company's most aggressive pricing actions since entering the market.
Targeting A Wider Buyer Base
With the latest revision, Tesla's India portfolio has been streamlined to two variants — the newly launched Model Y Premium RWD and the Model Y L Premium AWD six-seater, which was introduced earlier this year at ₹61.99 lakh (ex-showroom).
The price reduction comes after Tesla's slower-than-expected start in India, where high prices limited demand among potential buyers. The company appears to be targeting a broader pool of urban premium car buyers by positioning the Model Y closer to the ₹50 lakh price bracket.
The timing may also work in Tesla's favour as rising fuel prices amid geopolitical tensions in West Asia encourage more consumers to consider electric vehicles as an alternative to conventional fuel-powered cars.
Undercutting Luxury Rivals
The pricing is particularly notable because the Model Y is imported into India as a completely built unit (CBU) from Tesla's Shanghai facility and attracts a 70% basic customs duty.
Despite the high import levy, the revised Model Y Premium RWD is now priced below several luxury EV rivals. The BMW iX1 Long Wheelbase starts at ₹51.40 lakh, while the Mercedes-Benz CLA BEV is priced from ₹55 lakh.
Industry observers believe the revised pricing could help Tesla bridge the gap between mass-premium vehicles priced around ₹30-35 lakh and luxury offerings that typically begin above ₹80 lakh.
People familiar with the company's strategy said Tesla is also seeking to create clearer differentiation between its India offerings, positioning the five-seater Model Y Premium RWD for smaller families while targeting buyers seeking more space with the six-seater Model Y L.
Expanding India Presence
The portfolio reshuffle comes as Tesla continues to expand its presence in India after opening its first showroom in July 2025.
According to data from the Federation of Automobile Dealers Associations, Tesla retailed 342 vehicles during FY26, including 43 units in April this year.
The company is also gradually expanding its retail and charging network beyond Mumbai and Delhi. Bengaluru has recently been added to its footprint, while Hyderabad is expected to be among the next cities targeted for expansion.
