Tesla closer to launching Model 3 and Model Y in India as it applies for homologation

Tesla is keen on bringing its wares to India and has applied for homologation for its two best-selling models.

Homologation is one of the mandatory steps a carmaker takes before officially selling cars in a new market. It ensures the vehicles comply with the country's regulatory standards. The auto manufacturer must adhere to safety, emissions, and roadworthiness requirements.

According to IANS, Tesla originally applied for seven test permits but has now submitted an eighth one. They cover the Model 3 and Model Y.

Tesla kicked off the entry process into India by registering a subsidiary in 2021 but was hampered by high import duties of up to 110 percent. However, following a meeting between CEO Elon Musk and Prime Minister Shri Narendra Modi, the American company has decided that conditions are now more favorable.

Tesla has already leased a showroom in an upscale district near the Mumbai airport. It has also started hiring for multiple roles, including vehicle service, sales, customer support, and operations.

Indian car buyers are increasingly going electric. They bought nearly 100,000 units in 2023, up by 20 percent year-on-year. Tesla will compete with traditional automakers that already have an EV presence, including BMW, Mercedes-Benz, Volvo, Audi, and Porsche.