The Model Y range in India starts with the Premium Rear-Wheel Drive configuration, which Tesla originally launched at 5.989 million rupees (approx. 54,100 euros) in July 2025. Ahead of the brand’s first anniversary in the country, the company has reduced the price by 15 per cent to 5.089 million rupees (approx. 46,000 euros). It has also replaced the 15.4-inch touchscreen infotainment system with a 16-inch unit.
Following the price cut, Tesla is now directly challenging BMW’s iX1 LWB in India, priced from 5.140 million rupees (approx. 46,400 euros). The latter, assembled locally from imported knocked-down kits, was the best-selling electric luxury car in the country last year.
Tesla never launched the Model Y’s Premium Long-Range AWD configuration in India, but it did offer the less expensive Premium Long-Range RWD configuration. In April, the company expanded the line-up with the L Premium Long-Range AWD configuration, primarily aimed at larger families.
Unlike in any other market globally, Tesla positioned the Model Y’s L Premium Long-Range AWD configuration below the Premium Long-Range RWD in India. The company had faced criticism for overpricing the EV at launch, reflected in weak sales performance, and this was its first corrective measure aimed at improving the model’s value proposition. The 900,000-rupee (approx. 8,100-euro) price cut for the base configuration is the company’s second, and more significant, corrective step.
| Previous price | New Price | |
|---|---|---|
| Tesla Model Y Premium Standard-Range RWD | 59,89,000 rupees (approx. 46,000 euros) | 50,89,000 rupees (approx. 46,000 euros) |
| Tesla Model Y L Premium Long-Range AWD | 61,99,000 rupees (approx. 56,000 euros) | 61,99,000 rupees (approx. 56,000 euros) |
| Tesla Model Y Premium Long-Range RWD | 67,89,000 rupees (approx. 61,300 euros) | Discontinued |
Tesla has discontinued the Premium Long-Range RWD configuration, making the L Premium Long-Range AWD configuration the default choice for Model Y customers looking for greater long-distance capability and better performance. What remains unchanged is that the company still imports the Model Y as a CBU from China, which makes the car subject to high tariffs.
In addition to making the Model Y more attractive with revised pricing that represents better value, Tesla is expanding its reach. The company began operations with a single showroom in Mumbai and has since expanded to four locations, adding outlets in Delhi, Gurugram and Bengaluru. Recently, the company also opened a delivery centre and body shop in Hyderabad in partnership with Pride Exclusive.