Tesla slashes Model Y price in India

Following the launch of the Model Y’s six-seat “L” version in India, Tesla has reorganised the mid-size electric SUV’s grade structure.

The company has reduced the entry price by 900,000 rupees (approximately 8,100 euros) in an effort to make the model more competitive in the Indian market, News.Az reports, citing Electrive.

The Model Y range in India now begins with the Premium Rear-Wheel Drive variant, which Tesla initially introduced at 5.989 million rupees (around 54,100 euros) in July 2025. Ahead of the brand’s first anniversary in the country, Tesla has lowered the price by 15 per cent to 5.089 million rupees (around 46,000 euros). Alongside the price adjustment, the company has also upgraded the infotainment system, replacing the 15.4-inch touchscreen with a larger 16-inch unit.

After the price reduction, Tesla is directly positioning the Model Y against BMW’s iX1 LWB in India, which starts at 5.140 million rupees (approximately 46,400 euros). The BMW model, assembled locally from imported knocked-down kits, was the best-selling electric luxury vehicle in India last year.

Tesla did not launch the Model Y Premium Long-Range AWD variant in India, although it previously offered a more affordable Premium Long-Range RWD version. In April, the company expanded the lineup with the L Premium Long-Range AWD variant, which is mainly targeted at larger families.

Unlike other global markets, Tesla has positioned the Model Y L Premium Long-Range AWD variant below the Premium Long-Range RWD in India. The company had faced criticism over its pricing strategy at launch, which was reflected in weaker-than-expected sales performance. The recent changes represent Tesla’s first corrective measure aimed at improving the model’s value proposition, while the 900,000-rupee price cut for the base configuration marks its second and more substantial adjustment.

Tesla has now discontinued the Premium Long-Range RWD version, making the L Premium Long-Range AWD the default option for Model Y customers seeking greater long-distance capability and improved performance. However, the vehicles are still imported as completely built units (CBU) from China, meaning they remain subject to high import tariffs.

In addition to making the Model Y more attractive through revised pricing and improved value positioning, Tesla is also expanding its presence in India. The company began operations with a single showroom in Mumbai and has since grown to four locations, adding outlets in Delhi, Gurugram, and Bengaluru. More recently, Tesla opened a delivery centre and body shop in Hyderabad in partnership with Pride Exclusive.

News.Az 

By Nijat Babayev