Big move for Tesla in India! Certification sought for Model Y and Model 3
New Delhi: Tesla Inc., led by Elon Musk, has applied for the certification and homologation of two electric vehicle (EV) models in India, a crucial step before they can be sold in the country.
According to industry sources, Tesla India Motor & Energy Pvt. Ltd., the local arm of the US-based firm, has submitted two new applications for homologation for its Model Y and Model 3 vehicles.
Homologation is the process of certifying that a vehicle is roadworthy and meets the norms laid out for all vehicles manufactured in India or imported into the country. The tests ensure that the vehicle matches the requirements of the Indian market in terms of emission and safety and roadworthiness in accordance with the Central Motor Vehicle Rules.
Tesla's move comes as trade negotiations between India and the US continue, with discussions on lowering tariffs to boost bilateral trade. Musk has long been interested in entering India, the world’s third-largest automobile market, as an alternative to China, given rising US-China tensions.
The company had previously filed seven applications for homologation of test cars in India, with an eighth application recently approved.
While the Indian government is keen that Musk set up a plant in India to make Tesla for the local market, the billionaire wants to export the car to the country without any immediate manufacturing plans.
India's electric car market has shown impressive growth, with sales rising by 20 per cent to 99,165 units in 2024 from 82,688 in 2023. Tata Motors and JSW MG Motors currently lead the market.
The luxury EV segment has also expanded, with BMW, Mercedes-Benz India, Volvo Cars India, Audi, and Porsche selling 2,809 units in 2024, up from 2,633 in the previous year.
According to the Federation of Automobile Dealers Associations (FADA), overall electric passenger vehicle retail sales in India grew by nearly 20 per cent. The market is expected to continue expanding, with a projected compound annual growth rate (CAGR) of 43 per cent.
Government initiatives, including subsidies under the PM E-Drive scheme, are accelerating the transition to green energy and driving EV adoption. The electric two-wheeler segment also recorded substantial growth, with sales increasing to 1.13 million units in 2024 from 860,000 in 2023.
Overall, EV penetration in India rose to 7.46 per cent in 2024 from 6.39 per cent in 2023, highlighting the sector's rapid expansion.
IANS