Four Tesla models receive approval in India

Tesla Inc. electric cars may soon be on Indian roads. Four Tesla models receive approval from the Indian Union transport ministry. The models that obtained the nod were not identified on the ministry’s Vahan portal, however. Before an official launch, all automobile manufacturers, both Indian and international, must get their automobiles locally licensed.

Tesla established its Indian business, Tesla India Motors, and Energy Pvt. Ltd, last year, signaling its ambition to enter the potential growing market for electric vehicles in India. The company, which is based in California, has already been hiring top executives in preparation for a prospective launch.

“Tesla has completed homologation and received approval for 4 of its vehicle variants in India. While we don’t have any confirmation on names as yet, these are probably Model 3 and Model 4 variants,” Tesla Fan Club India tweeted.

The Four Tesla models that received approval do not imply that the cars will be available right away. Elon Musk’s company has been requesting a reduction in import duties on electric vehicles and related parts from India. It plans to import its vehicles as fully assembled units at first.

Last year, Tesla co-founder and CEO Elon Musk stated that the business might enter India in 2021.  “Next year for sure,” he stated in response to a Twitter question. He previously stated high import taxes on electric vehicles are hampering Tesla’s effort to sell its products in India.

Import duty

On totally built vehicles, India imposes a 100 percent import duty. Imported knocked-down kits are subject to a lower tax rate. Tesla and Hyundai, among other global automakers, have urged the government to lower the import duty. It is to foster a healthy market for electric vehicles.

Meanwhile, premium vehicle manufacturers such as Mercedes-Benz and Audi have already begun selling electric vehicles in India. It is after importing them as fully assembled vehicles.

Growth of electric vehicles

In order to combat severe pollution and reduce reliance on costly oil imports, the Modi administration has pushed for indigenous research and manufacturing of electric vehicles. To cut the cost of electric vehicles and grow India as a center for innovative technology products, the government has created a production-linked incentive plan for advanced chemical cell batteries.

To encourage the use of electric vehicles, the government has extended the second phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme by two years, until March 31, 2024.

In addition, the Department of Heavy Industries announced a 50 percent increase in incentives for electric two-wheelers. It is from 10,000 to 15,000 per kilowatt-hour. According to the new laws, incentives will limit to 40% of the overall price, as opposed to the previous ceiling of 20%. The Ministry of Heavy Industries entrusts Energy Efficiency Services Ltd with purchasing 300,000 electric three-wheelers for use by various bodies.

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