American electric vehicle company, Tesla has got a step closer to selling its cars in the Indian market. As per a recent development, India’s Ministry of Road Transport and Highways (MoRTH) has evaluated and certified four Tesla models to be compatible for Indian roads.
According to MoRTH website, tests that were conducted guarantee that the EVs meets the criteria of Indian market in terms of emission, safety, and roadworthiness.
The models examined in India were most likely variations of the company's economic cars, the Model 3 and Model Y, claims a Tesla fan Twitter account.
Tesla has been eyeing on the Indian market for a while. In January, the company completed the registration process in India and later established Tesla Motors India and Energy Private Limited in Bangalore.
According to a recent statistic, the EV market in India is projected to grow at a rate of 44% annually and reach $47 billion by 2026.
In India, just a few local manufacturers now produce electric vehicles. They don't have Tesla's brand recognition or manufacturing expertise.
The current electric vehicle market in the country is small, amounting to only 1% of total automobile sales. Several issues have led to the low sales of electric automobiles. One example being lack of adequate electric charging infrastructure, while another being the availability of financing alternatives for EV producers.
High excise costs on big cars and expensive import duties of up to 100% for vehicles costing more than $40,000 make the playing field even more challenging for Tesla.
In the United States, Tesla's cheapest car, the Model 3, costs $39,900. With accompanying import duties, its price nearly doubles in India, putting it out of reach for most Indians and drastically limiting the market for Tesla automobiles.
For Tesla, India is both an opportunity and a challenge. With the world's second-largest population, the country had the world's fifth-largest car market in 2020. That said, electric vehicles are expected to have a promising future in the India.