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Tesla Accelerates Indian Market Entry with Certification for Two Electric Models

Elon Musk's Tesla Moves Closer to Indian Roads

Elon Musk-led Tesla Inc. has taken a significant step towards entering the Indian market by initiating the certification and homologation process for two of its electric vehicles, the Model Y and Model 3. This move is essential for any vehicle to be deemed roadworthy and compliant with Indian regulations, covering aspects such as emissions, safety, and overall roadworthiness as per the Central Motor Vehicle Rules.

Tesla seeks certification for 2 EV models in India

Strategic Moves Amidst US-India Trade Talks

This development comes at a time when the US and India are engaged in discussions over a free trade agreement, with expectations of reduced tariffs to boost bilateral trade. Tesla's push for certification highlights the company's strategic interest in establishing a foothold in India, the world's third-largest car market, as an alternative to China, especially in light of stringent US sanctions on the latter.

Electric Vehicle Market in India: A Growing Landscape

The Indian electric vehicle (EV) market is witnessing rapid growth, with a 20% increase in sales to 99,165 units in 2024 from 82,688 units in 2023. Leading the charge are Tata Motors and JSW MG Motors, alongside luxury brands such as BMW, Mercedes Benz India, Volvo Cars India, Audi, and Porsche, which have also seen a rise in EV sales. Government initiatives and subsidies under the PM E-Drive scheme are further fueling this growth, as India moves towards green energy to combat climate change.

The Road Ahead for Tesla in India

While the Indian government is keen on Tesla setting up local manufacturing, Elon Musk is currently focused on exporting vehicles to India without immediate plans for local production. The electric two-wheeler segment has also seen significant growth, with sales jumping to 1.13 million units in 2024. Overall, EV penetration in India has increased to 7.46% in 2024, signaling a bright future for electric mobility in the country.