Tesla gets approval for four models from India’s testing agencies

Electric vehicle giant Tesla has cleared the homologation stage for all the four models/variants it had sought approval for in India paving the way for their launch.

As per information shared by the Centre-controlled Vahan Sewa, Tesla India Motors and Energy, the India subsidiary of Tesla Inc. has received approvals for all four of its vehicle variants. Homologation is a process that certifies a particular vehicle is roadworthy after meeting all the specified criteria.

It was not immediately clear which models or variants these were but multiple test cars of Tesla have been spotted regularly on Indian roads. Model 3 and Model Y have been seen testing in India since the past several weeks.

The approval, however, does not mean an immediate launch. Tesla, which has sought lowering of import duties from the Indian government, is yet to finalise its launch plans. The company is hoping to have a cheaper price tag on its cars which is otherwise not possible due to the steep import duties.

Import duty on EVs in India is 100 percent if CIF (cost insurance and freight) value is more than $40,000 and 60 percent if CIF value is less than $40,000.

The Model Y and Model 3 of Tesla are priced in the range of $38,700 to $41,200. Both models made up 90 percent of Tesla’s volumes in 2020. The balance share of 10 percent came from Model S and Model X which are priced in the range of $81,200 and $91,200.

In 2018 the government relaxed norms, permitting manufacturers to import and sell 2,500 vehicles per year without the need for homologation in India. A compliance certificate from the country of origin would suffice.