Tesla has lowered the entry price of the Model Y in India, introducing a new Premium Rear-Wheel Drive (RWD) variant, while also removing the more expensive Long Range RWD from its lineup.
The move lowers the starting price of the Model Y by approximately C$13,000 compared to the version Tesla launched when it entered the Indian market in 2025, and appears to be part of a broader strategy following the recent debut of the larger six-seat Model YL.
According to Tesla, deliveries of the new Model Y Premium RWD will begin in July 2026.
The new variant sits below the recently launched Model YL Premium AWD. With the lineup adjustment, Tesla now offers just two versions of the Model Y in India—the five-seat Premium RWD and the six-seat Model YL.
Model Y Premium Rear-Wheel Drive is now available to order online in India 🇮🇳
— Tesla India (@Tesla_India) May 29, 2026
Design yours → https://t.co/mFC2upFsT2 pic.twitter.com/sfjR0TXXmL
New entry-level Model Y brings lower price, shorter range
According to Tesla’s online configurator, the new Premium RWD starts at around C$79,300 and offers a WLTP-rated driving range of up to 500 km and can accelerate from 0 to 100 km/h in 5.9 seconds. The vehicle also supports Supercharging at up to 175 kW, allowing owners to recover up to 238 km of range in 15 minutes.
Inside, Tesla has added several upgrades aimed at distinguishing the new trim level. Buyers can choose between an all-black interior or the new Zen Grey option. The electric SUV also features Tesla’s latest 16-inch front touchscreen and an 8-inch rear passenger display.
Model YL likely influenced Tesla’s lineup changes
The timing of the new variant suggests Tesla is repositioning the Model Y lineup following the introduction of the Model YL in April.
The now-discontinued Long Range RWD variant was priced at around C$98,4000, making it substantially more expensive than the larger, more capable Model YL, which offers six seats, all-wheel drive, a WLTP range of up to 681 kilometres, and a quicker 0-100 km/h sprint of 5.0 seconds, which starts at C$90,000.
By replacing the Long Range RWD with a more affordable version, Tesla has created clearer separation between its two offerings while making the Model Y accessible to a broader group of buyers.
Tesla is likely also looking to stimulate demand after facing slow sales since entering the Indian market last year. The challenge has been India’s import duties, which exceeds 100% on imported vehicles, significantly increasing prices and making Tesla’s vehicles considerably more expensive than they are in other markets.
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