The American electric vehicle manufacturer introduced the Model Y L in Mumbai on Wednesday, marking its first new product launch since entering the Indian market in July of last year. Priced at ₹61.99 lakh, this six-seater, long-wheelbase SUV is set to begin deliveries in June, as noted in the company’s official press release. This launch caters to India’s demand for larger, three-row family vehicles—a category that the original five-seat Model Y did not adequately fill.
However, the circumstances surrounding this launch reflect a situation Tesla would prefer to avoid discussing.
Data from the Vahan portal indicates that only 342 vehicles have been registered in India since Tesla opened its inaugural showroom at BKC in Mumbai on July 15 last year. With an internal annual target of 2,500 units, as reported by Bloomberg, this represents just 14% utilization. Month-by-month details from FADA reveal a more vivid picture: registrations numbered 64 in September, 40 in October, 48 in November, and peaked at 73 in December—before dropping to 37 in January, 29 in February, and 49 in March.
Initial bookings hit a peak of 600, which fell short of even modest expectations. Tesla reportedly shipped around 300 cars to India, according to Bloomberg, and by January 2026, nearly 100 of these remained unsold, prompting the company to offer discounts of up to ₹2 lakh—an understated acknowledgment of the demand not meeting supply.
On the product front, Tesla now offers three variants in India. The entry-level Model Y Premium RWD is priced at ₹59.89 lakh, boasting a WLTP range of 500 km and accelerating from 0 to 100 kph in 5.9 seconds. The Model Y Premium Long Range RWD is available for ₹67.89 lakh, providing a range of 661 km. The newly launched Model Y L, priced at ₹61.99 lakh, offers all-wheel drive, six seats across three rows, a 681 km WLTP range, and accelerates from 0 to 100 in 5.0 seconds, as detailed in Tesla’s press release. The second-row captain seats feature powered armrests, ventilation, and heating, while the third row includes power recline and vented climate control. The vehicle is equipped with an 18-speaker audio system, adaptive suspension, and in-car streaming capabilities through platforms like Spotify, Apple Music, YouTube, and Netflix. Monthly financing options start at ₹49,000, the company stated.
Nevertheless, the primary challenge that has hindered Tesla’s progress remains unchanged. Each vehicle sold in India is a completely built import. The company opted not to engage in the government’s SPMEPCI scheme, which offers a reduced 15% import duty in exchange for a commitment to local manufacturing. Consequently, Tesla incurs the full 110% CBU duty on all vehicles priced above $40,000—affecting its entire lineup in India. This duty is the reason a car priced around $40,000 in the United States comes with a sticker price of nearly ₹62 lakh in India.
Slow progress has been made on infrastructure. Tesla now operates 20 Superchargers across five stations and 14 Wall Connectors, with plans for seven additional highway stations in cities such as Delhi, Chandigarh, Jaipur, Ahmedabad, Mumbai, Pune, Bengaluru, Hyderabad, and Chennai, per the company’s information. Service centers in Mumbai, Gurugram, Delhi, and Pune will soon be complemented by expansions into four more cities, as announced by Tesla.
The Model Y L serves as Tesla’s most definitive indication yet that it grasps the needs of the Indian market: ample space, a third row, and a premium yet practical family vehicle offering. The critical question remains whether ₹61.99 lakh is an appropriate price for this offering in a market where most cars are priced below ₹15 lakh. After nine months, Tesla has established a presence in India. The coming nine months will be crucial in determining if it can cultivate a successful business.
