Tesla, led by Elon Musk, has taken a major step toward entering India. The company has started the certification process for its Model Y and Model 3 electric cars. Since all vehicles must meet Indian safety, emissions, and roadworthiness standards, this approval is a crucial requirement before Tesla can sell in the country.
According to industry sources, Tesla India Motor & Energy Pvt. Ltd. has submitted applications for homologation of both models. This process ensures that imported or locally manufactured cars follow India’s Central Motor Vehicle Rules.
Tesla’s Past Applications and Trade Negotiations
Previously, Tesla filed seven homologation applications for test vehicles. Recently, authorities approved an eighth application, moving Tesla one step closer to launching sales in India.
Meanwhile, discussions between India and the US on a free trade agreement are ongoing. If finalized, this deal could reduce import tariffs and boost bilateral trade.
On one hand, Musk wants to first import Tesla cars before considering local production. On the other hand, the Indian government is urging Tesla to set up a factory to manufacture vehicles domestically.
India’s EV Market is Expanding Rapidly
India’s electric vehicle (EV) market has witnessed significant growth. In 2024, electric car sales increased by 20%, reaching 99,165 units, compared to 82,688 units in 2023.
In addition, the luxury EV segment also saw a rise in demand. Brands like BMW, Mercedes-Benz, Volvo, Audi, and Porsche collectively sold 2,809 electric cars in 2024, up from 2,633 units the previous year.
Moreover, data from the Federation of Automobile Dealers Associations (FADA) shows that electric passenger vehicle sales grew by nearly 20%. Experts predict this trend will continue, with a compound annual growth rate (CAGR) of 43% in the coming years.
Government Incentives and Two-Wheeler EV Boom
At the same time, the PM E-Drive scheme and other government incentives are fueling EV adoption. These policies support India’s transition to green energy and help combat climate change.
Furthermore, the electric two-wheeler market is expanding at a rapid pace. Sales jumped to 1.13 million units in 2024, compared to 860,000 units in 2023.
Overall, India’s EV penetration rose from 6.39% in 2023 to 7.46% in 2024. This upward trend highlights the country’s accelerating shift toward electric mobility.