EV giant submits homologation applications while showroom plans materialize.
March 17, 2025
Tesla has taken a significant step toward entering the Indian market by initiating the certification process for two of its bestselling electric vehicles, according to industry sources.
The American EV maker’s Indian subsidiary, Tesla India Motor & Energy, has submitted homologation applications for the Model Y SUV and Model 3 sedan to Indian authorities. This mandatory certification verifies that vehicles meet all safety, emissions, and road-worthiness standards before they can be legally sold in the country.
This marks a crucial development in Tesla’s long-awaited entry into the world’s third-largest automobile market, following years of negotiations with the Indian government over import duties and manufacturing commitments.
Beyond Test Vehicles
Sources familiar with the matter told IANS that these latest applications differ from Tesla’s previous submissions. The company had earlier filed seven homologation applications specifically for test vehicles, with an eighth recently receiving approval.
The new applications signal Tesla’s intent to bring commercial models to Indian consumers, rather than just evaluation units for internal testing.
Industry analysts view this development as confirmation that Tesla and the Indian government may be nearing agreement on regulatory hurdles that have delayed the company’s entry.
“This is the clearest indication yet that Tesla is preparing for commercial operations in India,” said Vikram Mehta, an automotive industry consultant. “The certification process typically takes several months, suggesting Tesla is targeting a market entry within the next year.”
Showroom Plans Materialize
Alongside the certification process, Tesla has reportedly finalized an agreement to establish its first Indian showroom, though the location remains undisclosed.
While CEO Elon Musk has expressed keen interest in the Indian market, the company has not yet committed to local manufacturing. Instead, Tesla appears to be pursuing an import-first strategy, possibly leveraging potential changes to India’s EV import policies.
Policy Changes May Smooth Path
The Indian government is considering modifications to its Scheme for Promoting the Manufacturing of Electric Passenger Cars in India (SMEC), which could benefit Tesla’s import plans.
The revised policy might ease domestic value addition (DVA) requirements and adjust minimum value thresholds for imported vehicles. Under the proposed changes, import duties could drop from the current 70-100% to just 15% for certain electric cars, provided manufacturers commit to investing at least Rs 4,150 crore ($500 million) in local production within three years.
These policy adjustments could allow Tesla to test the Indian market with imported vehicles while developing longer-term manufacturing strategies.
For Indian consumers eager to purchase Tesla vehicles without the current prohibitive import duties, these developments suggest the wait may soon be over.
