Tesla seeks homologation certificate for Model Y and Model 3 in India: IANS

To make its debut into the Indian market, Tesla has started the compulsory process of getting two of its electric vehicles certified and homologated in India, according to IANS.

According to the report, Tesla India Motor & Energy, the company's Indian affiliate, has filed two applications to have the Model Y and Model 3 automobiles homologated in India.

Homologation is the process of confirming that a car is safe to drive and complies with the standards established for all cars made in India or brought into the nation.

According to IANS, Tesla had previously filed seven applications for Indian homologation, all of which were for test vehicles. Recently, an eighth application was also approved.

Although Tesla has no plans to manufacture in India, Tesla CEO Elon Musk is eager to enter the Indian market, Autocar Professional reported. 

According to reports, Tesla has reached a deal to open its first showroom in India, which is a big step toward the company's entry into the third-largest auto market in the world. It may be simpler for Tesla to import automobiles at a reduced duty if the government makes some adjustments to the minimum value for imported vehicles and the proposed domestic value addition (DVA) criteria in the EV manufacturing program.

The Scheme for Promoting the Manufacturing of Electric Passenger Cars in India (SMEC) scheme plans to cut import duty on select electric cars from 70-100% to 15% for five years. However, the updated duty will apply only if automakers invest at least ₹4,150 crore ($500 million) in India within three years and meet DVA conditions.