Tesla India has significantly lowered the entry price of its Model Y electric SUV by nearly Rs 9 lakh following a rejig of the model lineup, making the vehicle more accessible to Indian buyers. The company has introduced the 2026 Model Y Premium Rear-Wheel Drive (RWD) at an ex-showroom price of Rs 50.89 lakh, while discontinuing the Model Y RWD priced at Rs 59.89 lakh and the Model Y Premium Long Range RWD variant that was priced at Rs 67.89 lakh.
Tesla is also highlighting affordability through financing options. The company is offering the Model Y Premium RWD with a down payment of Rs 6 lakh, while claiming an effective ownership cost of Rs 19,990 per month for customers upgrading from midsize sedans and SUVs. The brand sold 342 vehicles in FY26 and 43 units in April 2026, according to FADA data.
The move comes barely a month after Tesla launched the six-seater Model Y L Premium All-Wheel Drive (AWD) at Rs 61.99 lakh, a pricing strategy that had raised questions as the larger and more powerful Model Y L was cheaper than the five-seater long-range rear-wheel-drive variant.
Streamlining the Lineup
With the latest revision, Tesla now offers only two variants of the Model Y in India, the newly introduced Premium RWD and the range-topping Model Y L Premium AWD. The entry-level Model Y is now positioned Rs 11.1 lakh below the six-seater flagship variant.
The new Model Y Premium RWD delivers a WLTP-certified driving range of up to 500 km on a single charge. Deliveries are scheduled to begin in July 2026. Charging remains one of the vehicle’s key highlights. According to Tesla, the SUV can add up to 238 km of range in 15 minutes when connected to a Supercharger, with DC fast-charging support of up to 175 kW.
The 2026 Model Y RWD also receives several feature upgrades. It comes equipped with Tesla’s latest 16-inch central touchscreen and an 8-inch rear passenger display, features that were first introduced in India with the larger Model Y L. The cabin gets an all-black interior theme, black headliner and upgraded trim elements.
On the safety front, the electric SUV offers Advanced Driver Assistance Systems (ADAS), surround-view cameras and seven airbags. Tesla continues to offer its optional Full Self-Driving (FSD) package for Rs 6 lakh, although its functionality in India remains limited to automated parking as regulatory approvals for other autonomous features are still pending. The price correction is expected to strengthen Tesla’s appeal in India by bringing the Model Y closer to premium EV rivals in the market.
| Variant | Seating Capacity | Drivetrain | Ex-showroom Price (Rs lakh) | Status |
| Model Y Premium Long Range RWD | 5-seater | Rear-Wheel Drive | 67.89 | Discontinued |
| Model Y RWD | 5-seater | Rear-Wheel Drive | 59.89 | Discontinued |
| Model Y Premium RWD (2026) | 5-seater | Rear-Wheel Drive | 50.89 | New entry variant |
| Model Y L Premium AWD | 6-seater | All-Wheel Drive | 61.99 | Continues |
