Tesla Gets Approval For Testing Four Models In India

Electric car maker Tesla has been granted approval for homologation of all four models and variants it makes right now as per the information shared by the government's Vahan Sewa. This was first reported by Tesla India Club. Tesla which formed its India entity earlier in the year has been seen testing two Model 3 electric cars in Pune has now received approvals for the homologation of not just the Model 3 but also the Model Y, Model S and Model X. This could also be just the variants of the Model Y and Model 3 instead of the Model X and Model S which are likely to not be viable products for the Indian market thanks to their price.

Homologation is a process that certifies a car is roadworthy for a particular market which is why this is an important step in Tesla's nascent journey in India. Of course, this doesn't indicate an impending launch. Tesla has been lobbying for the lowering of import duties from the Indian government and even its CEO Elon Musk has criticised the government for its policies.

The Model 3 with an Indian no/ plate has been spotted numerous times in the Pune region

As of now, import duties stand at 100 per cent if the cost of insurance and freight value is more than $40,000 which will likely be the case with every car Tesla makes including its most affordable Model 3. That import duty goes down to 60 per cent if the value goes down below $40,000. Even Hyundai India joined Tesla in lobbying for a revamp of the import duty structure for electric vehicles.

Tesla is lobbying for a deal with the Indian government where it will likely commit to a manufacturing facility in India in lieu of reduced import duties so that it can launch in the country by importing its cars from its Chinese Gigafactory.

BREAKING : Tesla has completed homologation & received approval for 4 of it's vehicle variants in India.

While we don't have any confirmation on names yet, these are probably Model 3 & Y variants.

Will post more once we have confirmation.#TeslaIndia???????? #TCIN #Tesla pic.twitter.com/ozE5LV1u8Y

— Tesla Club India® (@TeslaClubIN) August 30, 2021

In 2018, the government also relaxed the homologation rules for the import of up to 2,500 vehicles. If the number is below 2,500 cars, then they don't need to be homologated for India but a certificate of compliance from the country of manufacturing would be enough. Considering the average selling price of cars in India is less than half of the stock American price of the Model 3, Tesla is likely not going to be a volume play in the mid-term which means it will take advantage of these homologation rules.