Mumbai, Jul 15 (PTI) Global EV giant Tesla on Tuesday made its much-awaited entry into India, launching its Model Y with price starting at Rs 59.89 lakh while opening its first experience centre here.

Tesla, led by American tech billionaire Elon Musk who had in the past cited India's high import tariffs for the company not entering the country earlier, will be importing the Model Y as a completely built unit (CBU), from its Shanghai manufacturing facility in China.

The mid-sized electric SUV Model Y, which was once the world's best-selling car, will be offered in India in two variants -- rear-wheel drive with base price at Rs 59.89 lakh and long-range rear wheel drive at a base price of Rs 67.89 lakh.

The deliveries are slated to start in the third and fourth quarter of 2025, respectively, for the two variants.

Initially, registration and delivery will start in Delhi, Mumbai, and Gurugram, the company said, adding that through its Tesla Design Studio, customers will be able to customise their Model Y exterior, interior, and even its features.

The rear-wheel drive variant has a range of 500 km while that of the long-range rear wheel drive is 622 km on a single charge.

The Model Y will compete with a range of electric luxury cars from German automakers such as Mercedes-Benz, BMW, and Audi.

Electric vehicles from Indian manufacturers Tata Motors and Mahindra & Mahindra are priced below Rs 30 lakh.

In the US, the Model Y long-range rear-wheel drive variant is available at USD 37,490 on cash payment.

Tesla's first experience centre in India at the Maker Maxity Commercial Complex, in Bandra Kurla Complex here was inaugurated by Maharashtra Chief Minister Devendra Fadnavis.

Tesla chief for APAC region Isabel Fan at the launch event said Tesla has redefined transportation and the company's goal is to set a great ecosystem to share technology.

Mumbai Experience Centre is meant for engaging customers, she said, adding that plans are to set up four charging stations each in Mumbai and Delhi.

Tesla said it is "committed and excited" to help drive a zero-emission and greener future in India.

"As part of Tesla's commitments in India, the company will continue to develop the experience center, service and support, and charging infrastructure in the country, aimed at delivering a seamless Tesla ownership experience," the company said.

Tesla's drive into India through the import route comes amid the government wooing EV makers to set up manufacturing plant in the country.

Last month the government had notified guidelines under the Scheme to Promote Manufacturing of Electric Passenger Cars in India, allowing import of up to 8,000 electric four-wheeler units annually at a lower import duty of 15 per cent, against 70-100 per cent currently, provided they commit an investment of Rs 4,150 crore for setting up local manufacturing facilities. The scheme was first announced on March 15 last year.

US President Donald Trump has said if Tesla were to build a factory in India to circumvent that country's tariffs, it would be "unfair" to the US.

Tesla CEO billionaire Elon Musk had said in April last year that his visit to India had been delayed due to the company's heavy obligations. He had said in 2022 that Tesla, which was earlier seeking reduction in import duties to sell its vehicles in India, would not manufacture its products unless it is allowed to first sell and service its cars in the country.

The electric car maker was seeking an initial tariff concession that would allow it to offset 70 per cent of customs duty for cars priced less than USD 40,000, and 100 per cent for cars of higher value.

However, earlier this year, Commerce and Industry Minister Piyush Goyal stated that India will not tailor its policies to suit Tesla, and its laws and tariff rules will be formulated to attract all-electric vehicle manufacturers from across the globe to set up a base in the world's fastest-growing economy.

Speaking at the launch event, Fadnavis said the Maharashtra government wants to see Tesla establish its research and development and manufacturing facilities in India, and invited the global EV major to consider the state as a partner in its journey.

"We wish to see research and development and manufacturing being done in India. I am sure Tesla will think about it at an appropriate stage," Fadnavis said.

"Consider Maharashtra as a partner in your journey," he said.

Last month, Tesla India took on lease 24,565 sq ft warehousing space in Lodha Logistics Park in Mumbai for five years.

In June, Union Heavy Industries Minister H D Kumaraswamy said the electric carmaker is not interested in manufacturing cars in India but keen on establishing showrooms in the country. Tesla has made its India debut at a time when it is facing reduced sales in Europe and China.

Last week, Tesla India Motors and Energy Pvt Ltd -- the Indian subsidiary of the company -- had received a trade certificate from the Regional Transport Office (RTO) in Andheri. Such a certificate allows the company to showcase its vehicles, conduct test drives, and begin sales.

Trade certificates are a necessary requirement under the Central Motor Vehicles Rules for vehicle dealers or manufacturers looking to operate unregistered vehicles for trials or promotional activities. PTI ND PSJ IAS RKL TRB

Import duty concession for EVs allows limited CBU imports at lower duty if manufacturer commits to local investment. Tesla has entered India by importing the Model Y as a completely built unit (CBU), launching sales and experience centres while relying on regulatory permissions to showcase and test vehicles. The central Scheme to Promote Manufacturing of Electric Passenger Cars permits a limited number of EV imports at a reduced customs duty if the importer makes a committed domestic investment to establish local manufacturing; otherwise standard higher import duties apply. Operational market entry also requires a trade certificate authorising use of unregistered vehicles for promotional activities.