Tesla has introduced a new six-seater version of its popular Model Y in India as it looks to attract more customers in one of the world’s largest car markets, where its sales have remained limited.
Since starting deliveries in September, Tesla has sold only around 350 Model Y vehicles in India, according to official data, while competitors like BYD, Mercedes-Benz, and BMW have performed much better during the same period.
The company’s imported vehicles face a high import tax of about 100%, something CEO Elon Musk has repeatedly criticized. This makes Tesla cars significantly more expensive in India compared to other markets.
With the new Model Y L, Tesla is aiming to reach a broader group of buyers, especially families who are increasingly choosing larger and more premium vehicles with modern features. This trend has boosted demand for three-row SUVs, a segment currently led by Toyota Motor and Suzuki Motor.
The Model Y L offers a longer driving range of up to 681 kilometers and is priced at around 6.2 million rupees, or about $66,000. This is slightly higher than the standard Model Y but still expensive for a market where most cars cost under $22,000.
Tesla had earlier launched this version in China at a lower starting price. At the launch event in Mumbai, a company executive said Tesla aims to improve affordability and reach more customers over time.
The company is also working on a smaller and more affordable SUV after canceling a low-cost EV project in 2024 to focus on robotaxis and humanoid robots.
While Tesla continues to push for self-driving technology, experts believe markets like India may take years to adopt such systems due to regulatory and infrastructure challenges.
Electric vehicles made up less than 5% of total car sales in India last year, with local companies like Tata Motors and Mahindra & Mahindra leading the segment.
Despite ongoing efforts by Elon Musk to convince the Indian government to reduce import taxes, the administration of Narendra Modi has instead encouraged local manufacturing. Tesla has since chosen to import cars rather than set up production in the country.
Deliveries of the six-seater Model Y L are expected to begin later this quarter, according to Tesla’s India management.
