Tesla Gears Up for India Launch
Tesla, a leading global electric vehicle (EV) manufacturer, is making significant inroads toward entering the Indian market. After several years of preparation, the company has finalised showroom locations in major Indian cities and is now advancing its vehicle homologation process. Let’s look into – Tesla’s current activities and anticipated market entry.
Homologation and Model Lineup
Tesla has completed the selection of its showroom locations and initiated recruitment process for its showrooms. The company has submitted homologation applications for the Tesla Model 3 and Model Y. Homologation is the mandatory process of obtaining regulatory approval to ensure that vehicles comply with India's safety, environmental, and technical standards. The Automotive Research Association of India (ARAI) is the body responsible for conducting these homologation tests, which include assessments of vehicle safety, quality, emissions, and performance. Upon successful completion of these tests, a Type Approval Certificate (TAC) is granted.
Initially, Tesla plans to import vehicles as Completely Built Units (CBUs) rather than engaging in local manufacturing. This strategic approach will allow the company to thoroughly assess Indian customer preferences and market dynamics. Based on this analysis, Tesla will then determine the optimal long-term strategy, which may involve transitioning to local production. The company's initial offerings will be the Model 3 and Model Y, which are currently the most accessible vehicles in their product lineup. Tesla is expected to introduce one or both models in the latter part of 2025.
Tesla's entry into the Indian market with the Model 3 and Model Y represents are a significant development for the country's growing EV sector. The company's decision to begin with CBU imports reflects a measured approach, prioritising market understanding before committing to local manufacturing. The successful homologation of these vehicles is a key step, and their potential launch in late 2025 has generated quite an excitement among Indian consumers.
