Tesla Seeks Certification For Model Y And Model 3 To Enter Indian Market: Report

Homologation involves certifying that a vehicle meets India’s roadworthiness and regulatory standards, including safety, emissions, and road standards, as outlined by the Central Motor Vehicle Rules

Electric vehicle sales in India grew 20 per cent in 2024, reaching 99,165 units, up from 82,688 units in 2023

Source : Archello

Tesla, led by Elon Musk, has begun the certification and homologation process for two of its electric vehicles in India—an essential step for all cars before they can be sold in the country. According to an IANS report citing industry sources, Tesla India Motor & Energy Pvt. Ltd., the local unit of Musk's company, has submitted applications for homologation of the Model Y and Model 3.

Homologation involves certifying that a vehicle meets India’s roadworthiness and regulatory standards, including safety, emissions, and road standards, as outlined by the Central Motor Vehicle Rules.

Earlier, Tesla submitted seven applications for homologation related to test cars, and an eighth application was recently approved. This move comes as the US and India are discussing a potential free trade agreement that could lower tariffs and foster bilateral trade, states the report.

Musk has expressed interest in entering the Indian market, which is the world’s third-largest car market, as an alternative to China, which is facing stricter US sanctions. While the Indian government has encouraged Musk to set up a manufacturing plant in the country, Musk’s current plan is to export Tesla vehicles to India, without committing to local production in the immediate future, as per the report.

EV Sales In India

Electric vehicle (EV) sales in India grew 20 per cent in 2024, reaching 99,165 units, up from 82,688 units in 2023. Tata Motors and JSW MG Motors are leading the market, while the luxury EV segment also saw increased sales, with 2,809 units sold by brands like BMW, Mercedes-Benz, Volvo, Audi, and Porsche in 2024, compared to 2,633 in 2023.

According to the Federation of Automobile Dealers Associations (FADA), electric passenger vehicle retail sales grew by nearly 20 per cent. Industry forecasts predict the EV market will continue expanding, with a compound annual growth rate (CAGR) of 43 per cent. Government initiatives and subsidies, such as those under the PM E-Drive scheme, are also supporting this growth as India transitions to green energy in its fight against climate change.

The electric two-wheeler segment also saw significant growth, with 1.13 million units sold in 2024, up from 860,000 in 2023. Overall EV penetration in the country rose to 7.46 per cent in 2024, up from 6.39 per cent in 2023.