Tesla slashes Model Y price by up to Rs 9 lakh in India to spur demand

Looking to buy a Tesla? your ride just got Rs 9 lakh cheaper!Tesla has slashed the price of its Model Y in India by up to Rs 9 lakh as it looks to boost demand in a market where high prices have limited the appeal of its imported electric vehicles. The EV maker has introduced the Model Y Premium Rear-Wheel Drive (RWD) at Rs 50.89 lakh (ex-showroom), replacing the outgoing Model Y RWD, which was priced at Rs 59.89 lakh. Meanwhile, the EV has discontinued the Model Y Long Range RWD variant, which was previously available at Rs 67.89 lakh.The restructuring leaves Tesla with a two-model portfolio in India. Alongside the newly launched five-seater Model Y Premium RWD, the company will continue to offer the Model Y L Premium AWD six-seater, which entered the market earlier this year at Rs 61.99 lakh (ex-showroom), ET reported.The latest pricing move comes after Tesla’s initial months in India saw demand constrained by the premium pricing of its vehicles. The reduction significantly lowers the cost of entry into the Tesla brand and places the Model Y closer to a segment of buyers who have traditionally found luxury electric vehicles out of reach.Despite being imported as a completely built unit from Tesla’s Shanghai factory and attracting a 70% basic customs duty, the revised Model Y Premium RWD now carries a lower starting price than several competing luxury EVs. The BMW iX1 LWB starts at Rs 51.40 lakh, while the Mercedes-Benz CLA BEV is priced from Rs 55 lakh.Industry observers see the move as an effort by Tesla to bridge the gap between mass-market premium vehicles and higher-end luxury cars. Many buyers in India move from vehicles priced around Rs 30-35 lakh directly to models costing well above Rs 80 lakh. By positioning the Model Y near the Rs 50 lakh mark and backing it with aggressive financing options, Tesla is seeking to widen its potential customer base.The timing may also prove favourable. With fuel prices climbing amid the Iran war, more consumers are showing interest in electric mobility, creating an opportunity for EV manufacturers to attract new buyers.People familiar with Tesla’s plans said the company is also refining the positioning of its products. The five-seater Model Y Premium RWD is intended for smaller families, while the larger Model Y L six-seater is aimed at customers looking for greater space and practicality.Tesla has been steadily expanding its presence since opening its first Indian showroom in July 2025. According to Federation of Automobile Dealers Associations (FADA) data, the company retailed 342 vehicles in FY26, including 43 units in April.Its expansion strategy extends beyond vehicle sales. After establishing operations in Mumbai and Delhi, Tesla has recently added Bengaluru to its retail and charging network, with Hyderabad expected to be among the next cities in line.