Tesla Inc has entered India via the CBU route from its Shanghai plant in China with the launch of Model Y in the country. The American EV giant operates four dealerships in the country in Mumbai, Bengaluru, Delhi and Gurugram. Tesla recently expanded the lineup to include the Model YL.
After the launch of Model YL, Tesla India has made changes to the variants of Model Y. This makes the Model Y Rs 9 lakh more affordable over its ex-showroom pricing and leaves the electric SUV with only one variant, as the Model Y Premium Long Range rear wheel drive variant has been discontinued. The Model Y is now positioned below the Model YL in the overall lineup.
Tesla Model Y Variant Redesign
When the Tesla Model YL was launched in India for the first time last month, it raised a lot of eyebrows in the country. This is because the model YL Premium All Wheel Drive variant was launched at Rs 61.99 lakh (ex-sh). However, the smaller, slower, less equipped, less range, one motor Short Model Y Premium Long Range rear wheel drive was priced at Rs 67.89 lakh (ex-sh).
Within a month, Tesla India has discontinued the Model Y Premium Long Range Rear Wheel Drive variant and reduced the price of the Model Y Premium Long Range Rear Wheel Drive variant by Rs 9 lakh, as it is now priced at Rs 50.89 lakh (ex-sh). The company is calling it a new variant and has given it the tag ‘2026’.
According to Tesla India, the new variant gets an all-black interior with a completely black headliner and premium trim for a more premium and immersive driving experience. Tesla is offering the Model Y premium rear wheel drive variant with a downpayment of Rs 6,00,000 and EMI starting at Rs 3,99,901.
Low cost promised
The press release mentions that Model Y Premium Rear Wheel Drive buyers can achieve savings of Rs 2,00,002 every month in fuel and maintenance alone (compared to an ICE vehicle). The press release also mentions that the Model Y offers premium rear wheel drive mid-size SUV and sedan owners an opportunity to upgrade to Tesla with an effective ownership cost of Rs 19,990 per month.
Home charging is provided and Tesla will also continue to invest in broader public charging solutions. The 2026 Model Y Premium rear wheel drive variant comes with a 16-inch front infotainment screen, an option for Zen Gray interior, seating for five adults, power folding seats, a stellar performance with 0-100 km/h in under 5.9 seconds and a promised range of 500 km. Deliveries will begin in July 2026.
Tesla’s statement
“Tesla’s mission is to build a world of amazing abundance. Tesla enables the use of electric vehicles by increasing the reach of Tesla technology and providing charging solutions around people’s lifestyles. Tesla will continue to invest in the country to create a seamless EV experience in India, with greater retail coverage, after-sales services and charging locations coming soon” – Ms. Isabel Fan, Senior Director, Tesla.