Synopsis
Tesla, under Elon Musk, has begun the certification process for two electric vehicle models in India, a key requirement for market entry. The company seeks to establish its presence in the growing Indian market, aiming for homologation of the Model Y and Model 3 in compliance with local regulations.Key Takeaways
- Tesla is pursuing homologation for Model Y and Model 3 in India.
- The process ensures compliance with local safety and emission standards.
- Elon Musk aims to penetrate the Indian market amid US-China tensions.
- Electric vehicle sales in India saw a 20% increase in 2024.
- Government initiatives are boosting the EV sector's growth.
New Delhi, March 14 (NationPress) Tesla Inc., led by Elon Musk, has commenced the certification and homologation process for two electric vehicle models in India, a crucial step for any vehicle before it can be marketed in the country.
The local subsidiary, Tesla India Motor & Energy Pvt. Ltd., has filed applications for the homologation of the Model Y and Model 3 vehicles in India, as per industry insiders.
Homologation entails certifying that a vehicle is fit for road use and complies with the regulations specified for all vehicles produced or imported into India. The evaluation ensures that the vehicle adheres to local standards concerning emissions, safety, and roadworthiness according to the Central Motor Vehicle Rules.
Previously, the company had submitted seven applications for homologation intended for test vehicles, with an eighth application recently gaining approval.
This development coincides with ongoing discussions between the U.S. and India regarding a free trade agreement that is anticipated to reduce tariffs and bolster bilateral trade.
Musk is eager to penetrate the Indian market, which ranks as the third-largest car market globally, seeking an alternative to China, particularly after stringent sanctions imposed by the U.S. on the communist nation.
While the Indian government is advocating for Musk to establish a manufacturing facility in India to produce Tesla vehicles for the local market, the billionaire's current preference is to export vehicles to India without immediate plans for local production.
Electric vehicle sales in India surged by 20 percent, reaching 99,165 units in 2024, up from 82,688 units in 2023. Tata Motors and JSW MG Motors are currently dominating the market.
The luxury electric vehicle sector also saw a notable rise in sales, with 2,809 EVs sold by BMW, Mercedes Benz India, Volvo Cars India, Audi, and Porsche in 2024, compared to 2,633 units in 2023.
According to the Federation of Automobile Dealers Associations (FADA), retail sales of electric passenger vehicles in India grew by nearly 20 percent.
The EV market is projected to maintain its growth trajectory, with industry estimates forecasting a compound annual growth rate (CAGR) of 43 percent.
Government initiatives and subsidies under the PM E-Drive scheme are also facilitating the expansion of the EV market in India, as the nation shifts towards green energy to combat climate change.
The electric two-wheeler segment experienced substantial growth, with 1.13 million units sold in 2024, a rise from 860,000 units in 2023.
The overall EV penetration in the country increased to 7.46 percent in 2024, up from 6.39 percent in 2023.
