Tesla Model Y to get an affordable, smaller version. Will it launch in India?

Tesla is said to be developing a cheaper version of the Model Y, which will be 20 per cent less expensive to manufacture. As per a recent Reuters report, this new model will not be a completely new car but a reworked version of the current Model Y. This indicates Tesla's plan to launch cost-friendly variants without straying far from its existing range.

Earlier reports suggested thatTesla is planning to launch its India operations with an affordable electric car. The EV maker could introduce a ₹21-lakh EV to kickstart its operations in the country. According to a CNBC-TV18 report, Tesla could introduce EVs manufactured at its Berlin GigaFactory in India initially. The report also claims the price of Tesla's first electric car could be around ₹21 lakh (($25,000).

Codenamed E41, the new Model Y variant is expected to enter production in China in 2025, with additional manufacturing planned in Europe and North America. While Shanghai’s factory will primarily cater to the Chinese market, Tesla aims to ramp up production in the United States as well.

Expected Pricing and Features

If the savings are carried across all areas of production—right down to Tesla's profit margins—the new Model Y may have a base price of about $25,000 to $30,000 before taxes. The model will likely adopt the same strategy as the low-cost Model 3 introduced in Mexico last year. That model saved costs by cutting some features such as heated seats and a rear entertainment screen while keeping the same motor and battery.

Design and Platform Considerations

There is still some doubt about how much smaller the updated Model Y is going to be in comparison to the current model. According to Reuters' report, the car will be downsized, but Tesla itself has not revealed any substantial structural or body changes. The company assured us that this more budget-friendly variant will be produced using current production lines, combining features from current and future platforms.

Check out Upcoming EV Cars in India, Upcoming EV Bikes in India.