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

Electric vehicle maker Tesla Inc. TSLA has received regulatory approval in India to make or import four models, Bloomberg reported Monday.

What Happened: The four models were certified as being roadworthy in India after meeting specified criteria, as per the report that cited a posting on India’s ministry of road transport and highways.

A Tesla fan club in India had earlier speculated on Twitter that the four approved Tesla models were probably Model 3 and Model Y variants.

See Also: Tesla Gets Volkswagen Backing In Calling For India To Slash Heavy Import Taxes On EVs

Why It Matters: The regulatory approval takes Tesla a step closer to its official launch in India, the world’s largest fifth-largest car market.

It was reported earlier on Monday that India could offer Tesla partial relief on import duties to get electric vehicles shipped to the country.

Musk has criticized India’s restrictive policies and said that while Tesla wants to make cars in the South Asian nation, the import duties there are the highest in the world.

The currently applicable import duty in India is 60% on cars priced below $40,000 and 100% for those above the price ceiling.

India’s EV sale numbers are currently small, but the country’s huge market is seen as holding similar potential for Tesla as China does.

Price Action: Tesla shares closed almost 2.7% higher in Monday’s trading session at $730.91.

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Photo: Courtesy of Tesla