Tesla Initiates Certification for EV Models in India
New Delhi, March 14 (SocialNews.XYZ) – Tesla Inc., led by Elon Musk, has taken the first steps toward bringing its electric vehicles to India. The company has begun the certification and homologation process for two of its models, the Model Y and Model 3, which is a necessary requirement before any vehicle can be sold in the country.
Tesla India Motor & Energy Pvt. Ltd., the local subsidiary, has submitted applications for the Model Y and Model 3. Industry sources confirm the filings. Homologation ensures a vehicle meets all Indian road safety and emission standards. This certification process, as outlined in the Central Motor Vehicle Rules, verifies that vehicles are roadworthy and compliant with the regulations.
Previously, the company submitted seven applications for homologation, which were for test vehicles. According to sources, an eighth application was approved recently.
This move coincides with discussions between the US and India regarding a free trade agreement. Such an agreement could lower tariffs between the two nations, thereby boosting bilateral trade. Musk has expressed interest in entering the Indian market, seeing it as a promising alternative to China. US sanctions have tightened on the communist country.
While the Indian government is eager for Tesla to establish a manufacturing plant in India, Musk initially aims to export vehicles to the country without immediate plans for local production.
The Indian electric vehicle market is experiencing rapid growth. In 2024, electric car sales surged by 20 percent, reaching 99,165 units, up from 82,688 in 2023. Tata Motors and JSW MG Motors are currently the market leaders in India. The luxury electric vehicle segment also saw an increase, with sales rising from 2,633 in 2023 vehicles to 2,809, including models from BMW, Mercedes Benz India, Volvo Cars India, Audi, and Porsche.
According to the Federation of Automobile Dealers Associations (FADA), retail sales for electric passenger vehicles in India nearly grew by 20 percent in the same period. Industry forecasts expect a compound annual growth rate (CAGR) of 43 percent for the EV market.
Government initiatives, along with subsidies under the PM E-Drive scheme, are also fueling the growth of the electric vehicle sector as India promotes green energy as part of its efforts to combat climate change. The electric two-wheeler segment also saw robust growth, with sales increasing from 860,000 units in 2023 to 1.13 million in 2024. Overall EV penetration in the country rose from 6.39 percent to 7.46 percent during the same period.
