Updated August 31st, 2021 at 15:01 IST
Tesla India launch inching closer as company gets approval for four vehicle models
American electronic vehicle manufacturer Tesla Inc. completed the homologation stage for four vehicle models it had sought approval for in India
Advertisement
Electronic vehicle manufacturer Tesla completed the homologation stage for four vehicle models it had sought approval for in India, taking another strong step towards its debut in the country.
Tesla India Motors and Energy, the India subsidiary of Tesla Inc., had secured permissions for four of its car versions, according to information provided by the Centre-controlled Vahan Sewa.
Homologation is the process that validates a vehicle's roadworthiness after it meets all of the requirements. Although it was not immediately obvious which models or versions were involved, various Tesla test cars like Model 3 and Model Y have been previously tested on Indian roads.
Tesla yet to finalise India launch
The approval, however, does not imply that the vehicles would be launched right now. Tesla has yet to finalise its launch preparations after requesting a reduction in import duties by the Indian government.
The company hopes to lower the price of its cars, which would otherwise come at an impossible price due to high import duties. Tesla's Model Y and Model 3 have prices ranging from $38,700 to $41,200. In 2020, both models accounted for 90% of Tesla's sales. The remaining 10% came from the Model S and Model X, which are priced between $81,200 and $91,200. Model 3 is Tesla’s first EV to cross one million sales.
Import duty for EVs in India
In India, the import duty on electric vehicles is 100% if the CIF (cost, insurance, and freight) value is more than $40,000, and 60% if the CIF value is less than $40,000. This causes a huge increase in the car's consumer price. The government eased regulations in 2018, allowing manufacturers to import and sell 2,500 automobiles each year without having to undergo homologation in India. It would be sufficient to have a conformity certificate from the nation of origin as per the regulation update.
Netizens have been posting their opinions on Twitter since the news of Tesla's homologation surfaced online, with some discussing the import cost issue. Take a look at a few comments:
Why should one EV mfg company i.e. Tesla being considered for partial import duty break when they aren’t investing in manufacturing in India but merely assembling? Have nothing against the company but India needs to become a manufacturing hub not a profiteering hub for EVs.
— Priyanka Chaturvedi🇮🇳 (@priyankac19) August 31, 2021
If the price is right, Model 3 will sell like hot cakes in India. Knowing Tesla they’ll experiment and nail it in 2 quarters.
— Future is AI ~Tesla v10 (@TheFuture_is_AI) August 31, 2021
Why cannot India follow Chinese model to allow Tesla in India. Eventually companies like @Tesla will setup factories in India if demands pick up. I am planning to file a PIL against the 100% duty levied by the Government on import of electric cars.@PMOIndia @elonmusk
— Amit Jaju (@amitjaju) August 31, 2021
Tesla's car and truck models elsewhere
Tesla, based in Palo Alto, California, is an American electric vehicle and clean energy firm co-founded by entrepreneur Elon Musk. The company is dedicated to creating electric vehicles, battery energy storage for houses and grids, solar panels and solar roof tiles. CEO Elon Musk is known for his creative ideas on vehicles, especially for the proposed 2023 Cybertruck with a unique angular look.
Some of the most well known Tesla car models are:
- Model S
- Model X
- Model 3
- Model Y
Expected future car models by Tesla are:
- Cybertruck
- Tesla Semi
- Roadster (second generation)
(Image: AP)
Advertisement
Published August 31st, 2021 at 15:01 IST
Your Voice. Now Direct.
Send us your views, we’ll publish them. This section is moderated.