Tesla launches new six-seater Model Y in India

US electric vehicle maker ‌Tesla has launched a six-seater version of its best-selling Model Y in India as it tries to attract buyers in the world’s third-largest car market where it has struggled to grow sales.

Tesla has sold just 350 Model Ys in India since starting deliveries in ​September, government data showed, with rivals including BYD, Mercedes-Benz and BMW far outselling the U.S. company over the ​same period.

Its imported Model Y attracts a steep 100% import tariff, a level that chief Elon ⁠Musk has often criticised, meaning Tesla’s cars are priced much higher in India than in other markets.

With the Model ​Y L, Tesla aims to tap a wider customer base as Indian buyers, especially families, increasingly turn to larger, premium ​vehicles equipped with touchscreen displays and sunroofs. This shift has helped propel demand for three-row SUVs in India, a segment currently dominated by Toyota Motor and Suzuki Motor.

The Model Y L, which has a longer driving range of 681 kilometers (423 miles), will be priced ​at about 6.2 million rupees, equivalent to $66,000. That is only slightly above the $64,000 price tag on the Model Y, ​but still far above a market where most cars are priced below $22,000.

Tesla introduced the Model Y L in China last year at ‌a ⁠starting price of 339,000 yuan ($49,700).

Isabel Fan, a senior director at Tesla, told reporters at the vehicle’s launch event in Mumbai on Wednesday that the company has mass-market models and it wants to increase accessibility.

“We continue to work on affordability,” she said.

Tesla is developing a smaller, cheaper SUV after scrapping a highly anticipated low-cost EV project in 2024 to focus on ​robotaxis and humanoid robots, Reuters ​reported this month.

While the ⁠carmaker is aiming for full self-driving autonomy for all its models, there is a realisation that many global markets, including India, won’t see meaningful adoption – nor regulatory acceptance – of ​driverless vehicles for years.

Electric vehicles made up less than 5% of total car sales ​in India last ⁠year, with local players including Tata Motors  and Mahindra dominating the sector.

Musk has lobbied India’s federal government for years to lower import tax on electric cars but Prime Minister Narendra Modi’s administration rejected the proposals, instead pushing Tesla to manufacture locally. However, Tesla dropped ⁠plans to ​build cars in India, instead importing Chinese-made models.

Deliveries of the six-seater ​Model Y L will begin in the current quarter, Tesla’s India General Manager Sharad Agarwal said at the event.