Tesla has reduced the entry price of the Model Y in India by introducing a new Premium Rear-Wheel Drive (RWD) variant and removing the more expensive Long Range RWD version from its lineup.
The change lowers the starting price of the Model Y by approximately C$13,000 compared with the version offered when Tesla entered the Indian market in 2025. The adjustment comes shortly after the launch of the larger six-seat Model YL and appears aimed at creating clearer differentiation within the company’s product range.
According to Tesla, deliveries of the new Model Y Premium RWD are scheduled to begin in July 2026.
New Entry-Level Variant Joins Lineup
With the latest update, Tesla now offers two versions of the Model Y in India: the five-seat Premium RWD and the six-seat Model YL Premium All-Wheel Drive (AWD).
According to Tesla’s online configurator, the new Premium RWD variant starts at approximately C$79,300. The vehicle offers a WLTP-rated driving range of up to 500 kilometres and accelerates from 0 to 100 km/h in 5.9 seconds.
The model supports DC fast charging at up to 175 kW through Tesla’s Supercharger network, enabling drivers to add up to 238 kilometres of range in approximately 15 minutes under optimal conditions.
Interior Updates Included
Tesla has equipped the new variant with several interior upgrades.
Customers can choose between an all-black interior or a new Zen Grey colour scheme. The vehicle also features Tesla’s latest 16-inch front touchscreen display and an 8-inch rear passenger screen.
These updates align the new entry-level version with Tesla’s latest interior design and technology package.
Lineup Repositioning Following Model YL Launch
The introduction of the Premium RWD follows the launch of the six-seat Model YL in April 2026.
The discontinued Long Range RWD version was priced at approximately C$98,400, placing it above the larger Model YL, which starts at around C$90,000.
The Model YL offers all-wheel drive, seating for six occupants, a WLTP range of up to 681 kilometres, and a 0-100 km/h acceleration time of 5.0 seconds.
By replacing the Long Range RWD with a more affordable model, Tesla has widened the price gap between its two Model Y offerings and created a more distinct product hierarchy.
Focus on Expanding Market Reach
The lower-priced variant may also help Tesla attract a broader customer base in India, where vehicle pricing remains a major challenge for imported electric vehicles.
Since entering the Indian market in 2025, Tesla has faced headwinds related to import duties that can exceed 100% on imported vehicles. These tariffs significantly increase retail prices compared with many other global markets.
The new Premium RWD variant provides a lower-cost entry point into Tesla ownership while allowing the company to maintain a premium positioning for the larger and more expensive Model YL.