Tesla Nears Entry Into Indian Market As Three More Models Get Regulatory Approval

Tesla Inc TSLA has secured homologation certificates for three more models in India, indicating the electric vehicle maker is closer to launch in the world’s fifth-largest auto market, The Hindu Business Line reported, citing a local government run-agency.  

What Happened: Tesla has now secured the approvals for a total of seven models from India’s vehicle testing and certification agencies. 

The Elon Musk-led company had in August secured the homologation, or the roadworthy certification in India, for four of its models that met the specified criteria set by the local agency.

Tesla’s Model 3 and Y test cars have often been spotted on Indian roads. The electric automaker currently sells four models and their variants in the United States.

See Also: Tesla Superchargers Spotted In India Even As EV Maker Said To Face Fresh Regulatory Roadblock

Earlier this month, Tesla’s V2 superchargers were spotted in India. 

Why It Matters: Tesla has been lobbying hard with the Indian government to lower import taxes on electric vehicles before it begins selling cars in the country.

Musk tweeted in July to say that the import duties in India are the highest in the world. Tesla says that India's duty structure would not make its business in the country a "viable proposition."

Electric vehicles draw an import duty of 100% if priced above $40,000 and 60% for models below $40,000. 

See Also: Tesla Nears Entry Into Indian Market As Four Models Get Regulatory Approval

Tesla's request for a tax cut had raised outrage among domestic automakers regarding their investment in the country. According to local media reports on Monday, the government has asked Tesla "to present a blueprint of investment for any tax cuts."

Price Action: Tesla shares closed 0.82% lower at $958.51 a share on Tuesday.