Tesla initiates the certification process for its Model Y and Model 3 electric cars, aiming to enter India’s growing EV market
Tesla India Motor & Energy Pvt. Ltd., the Indian unit of the company, has submitted applications for the homologation of the Model Y and Model 3. Homologation is a vital procedure to ensure that vehicles meet the Indian standards for safety, emissions, and roadworthiness in accordance with the Central Motor Vehicle Rules, reported timesofindia.indiatimes.com.
A Strategic Move Amid Growing EV Demand
Tesla had previously submitted seven applications for homologation, including an approved eighth application for test cars. This new step comes amid discussions between the US and India about a free trade agreement, which could result in reduced tariffs and boost bilateral trade between the two nations.
Elon Musk is eager to establish a presence in India, the world’s third-largest car market, as an alternative to China, especially given the challenges posed by US sanctions on the country. While the Indian government is keen for Musk to establish a manufacturing plant locally, Musk’s current focus is on exporting Tesla vehicles to India, without immediate plans for production in the country.
Electric Vehicle Market Growth in India
India’s electric vehicle (EV) market is rapidly expanding. In 2024, sales jumped 20% to 99,165 units, up from 82,688 in 2023. Tata Motors and JSW MG Motors are currently the leaders in this space. The luxury EV market also saw growth, with 2,809 units sold by brands like BMW, Mercedes-Benz, and Audi in 2024, compared to 2,633 in 2023.
Elon Musk-led Tesla Inc. has started the certification and homologation process for two of its electric vehicle models in India, a key step for vehicles to be sold in the country
The Federation of Automobile Dealers Associations (FADA) reports that retail sales of electric passenger vehicles grew by nearly 20% last year. Industry forecasts suggest the EV market in India will continue to grow at a compound annual growth rate (CAGR) of 43%, fueled by government initiatives and subsidies, like the PM E-Drive scheme, aimed at transitioning the country to green energy.
Growing EV Adoption and Government Support
The electric two-wheeler segment has also experienced significant growth, with 1.13 million units sold in 2024, compared to 860,000 in 2023. Overall EV penetration in India reached 7.46% in 2024, a rise from 6.39% the previous year. This growth reflects the increasing adoption of electric vehicles in India, driven by consumer demand and government incentives.
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