Tesla recently announced its Q2 sales numbers, and during the call, Elon Musk confirmed that Tesla’s future entry-level model is not an all-new car, but just an “affordable Model Y”. Earlier this year, Tesla had expressed high hopes for the future with its upcoming launches, one of which is a new affordable model.
- Affordable Tesla to be based on Model Y
- Likely to be aimed at the US and European markets initially
- Tesla Model Y price in India starts at Rs 59.89 lakh
Affordable Tesla Model Y details
Production of the more affordable Model Y to begin in August
While the “Affordable Tesla” was expected to be an all-new model, touted to be called the Model 2 upon debut, it seems to be a stripped-out iteration of the American EV brand’s bestseller. Series production of the Tesla Model Y’s affordable variant could begin around August or September this year. There is no clarity from Elon Musk on whether such “affordable Tesla models” will be planned for future cars, like the Model 3, or will be confined to the Model Y. The brand is yet to reveal details of the markets which will see sales of the affordable Model Y.
The ongoing electric car grants in the United States, which amount to USD 7,500 per vehicle, are soon going to end, thanks to President Donald Trump’s rollback of emission mandates. The upcoming entry-level Tesla Model Y is aimed at pushing sales, thanks to its lower pricing compared to the current Model Y’s USD 51,990 sticker price before incentives. Additionally, introducing the affordable Model Y to the European market will help Tesla give its buyers a lower entry price point to the brand. Tesla’s sales in Europe have been on a downward trend for a long time, with the brand losing market share over the past six months on the continent, thanks to an overall decline in electric car sales and the growing competition from Chinese brands.
Tesla Model Y in India
Tesla Model Y price range is Rs 59.89 lakh to Rs 67.89 lakh
Tesla entered the Indian market with the Model Y earlier this month. Being a CBU import, the Model Y has been subjected to the full extent of EV taxation and duties, costing almost Rs 60 lakh for the RWD and Rs 68 lakh for the Long Range RWD (ex-showroom, India). The brand initially opened bookings for the Model Y in a limited number of cities, but they are now available pan-India. At this price point, the Model Y will be a niche offering in the country as it sits at the upper end of its segment, which has similarly sized, better-equipped rivals at lower prices. While the “affordable model Y” may not make sense for India, the recently shown six-seater long-wheelbase Model Y for China could be a good option for India should Tesla decide to build a right-hand drive version of the Model Y LWB in future.
All prices, ex-showroom, India.
Also see:
Deep Drive Podcast: Is Tesla's India entry a big deal?
2025 Tesla Model Y India review: Is the hype real?