Tesla seeks homologation for Model 3 & Model Y in India — First EVs to enter?

After years of back-and-forth regarding its plans to enter the Indian market, Tesla has finally picked up speed with a series of actions. The company has now applied for homologation for its Tesla Model Y and Tesla Model 3. This suggests that these models will likely be the first to hit retail in India from Tesla's lineup in the future. Keep reading below for more details on recent updates, future plans, and what to expect from these models.

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Tesla Model 3 & Model Y

In the international market, the Tesla Model Y comes in a Standard Range version with a 466 km range and rear-wheel drive. It can accelerate from 0 to 100 km/h in just 5.9 seconds. There’s also a Long Range option that offers 551 km of range and features a dual-motor all-wheel drive. This version can reach 0 to 100 km/h in 4.3 seconds.

The Tesla Model 3 internationally is available in three variants: Performance, Long Range AWD, and Rear Wheel Drive. The claimed ranges for these EVs are 528 km, 629 km, and 513 km, respectively.

Tesla announces first showroom in India

Recently, Tesla confirmed that its first showroom in India will open in Mumbai, covering 4,000 square feet on the ground floor of the Bandra Kurla Complex (BKC). It is also expected that a second showroom will open in Delhi. In the meantime, Tesla has started hiring for various positions in India.

Also Read: Tesla is finally coming to India! — Here’s everything you need to know

Change in policy sets the stage for Tesla's arrival

Tesla has been looking to enter the Indian market for a while now, and efforts have been ongoing. The parent company, Tesla Motors, had already set up its subsidiary, Tesla India Motors and Energy Private Limited, in Bengaluru back in January 2021. After that, things seemed to slow down, with little noise about their plans. It appeared as though Tesla was waiting for the right moment, possibly for the reduction in import duties on electric cars.

Under the new policy announced last year, the import duty on passenger EVs has been reduced from 70-100% to 15% for the next five years. However, there are conditions attached. Foreign companies must invest at least Rs 4,150 crore and set up manufacturing facilities in India, with production needing to start within three years. For imports, under the 15% duty, companies can bring in up to 8,000 cars per year, with a total limit of 40,000 cars.

While Tesla is reportedly pushing for even lower duties, possibly aiming for 0% tax, for now, it seems they’ll stick with the CBU (Completely Built Unit) route to test the waters in India.

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