Tesla takes steps for model Y and model 3 homologation in India, towards entry in the third largest auto market.
The process, which is mandatory to certify the safety and compliance of vehicles with Indian standards, is known as homologation and Tesla has started this with its Model Y and Model 3 in India. This move marks Tesla’s serious intention to become a part of the Indian market.
Applications Filed
The company’s Indian affiliate Tesla India Motor & Energy has also applied for homologation of its electric vehicles, Model Y and Model 3, according to an IANS report. It ensures that the vehicles are certified to ensure compliance with the regulations necessary for its operation in India.
Previous Submissions
It has already submitted seven applications for test vehicles. As per IANS, a recent eighth application was approved, which indicates how Tesla has been in constant pursuit to make its cars Indian-compliant.
Manufacturing Plans
Tesla has no immediate plans to manufacture vehicles in India, but CEO Elon Musk is keen to get the company going in the country. According to reports from Autocar Professional, Tesla’s plan is to import the vehicles while simultaneously securing the best possible terms with the Indian government.
Showroom Agreement
Tesla has reportedly signed a lease for its very first showroom in India. By building up its network of charging stations there, Tesla is taking a significant step toward entering the Indian market, which is the world’s third-largest automotive market and is seen to be the key to potential profitability for Tesla.
Reduced Import Duty
According to provident information, the Indian government may soon decrease import duties on some electric vehicles as part of the Scheme for Promoting the Manufacturing of Electric Passenger Cars in India (SMEC). This plan is expected to motivate foreign car makers to invest in the Indian market.
Duty Reduction
Under the SMEC program, import duties could fall from 70-100% to 15% for five years. But this discount would be available only if automakers fulfil certain conditions, including making an investment of ₹4,150 crore ($500 million approximately) in India within a span of three years and meeting domestic value addition (DVA) norms.
Market Potential
This is an important market for Tesla as well, with interest in electric cars on the rise in India along with government support for wide-scale adoption of EVs. Tesla’s arrival is anticipated to strengthen the EV ecosystem and foster competition among the automakers in the country.
Challenges Ahead
While Tesla has lofty aspirations, it will likely encounter several challenges, including expensive imported cars, dealing with DVA stipulations, and facing aggressive competition from local and international EV producers that already have a foothold within the Indian market.
Tesla itself initiated the homologation process & has also planned a showroom in the country, highlighting the electric vehicle maker’s interest in the Indian market. If it succeeds at doing this, it will pave the way for more premium electric vehicles in the country, thereby changing the shape of the EV world in India.
One of the things that stand out about Tesla is its continued focus on trying to enter the Indian EV market, including working towards homologating its Model Y and Model 3 in the country. Between negotiations on import duties and a possible showroom in development, Tesla is methodically pushing its way into one of the world’s most vibrant automotive markets.
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