In a notable shift, foreign automotive OEMs are now coming to India to test their vehicles. For many years, Indian automotive OEMs had to send their vehicles abroad for testing, but that trend is changing. The Automotive Research Association of India (ARAI) has observed an increase in global automotive companies seeking its testing services.
Domestically, ARAI is diversifying its focus beyond road mobility into other niche areas, including rail and metro, aerospace and defence, drones, white goods, mining machines, and construction equipment. The drone testing facilty has received government approval and will be operational soon.
Reji Mathai, the Director of ARAI, mentioned that the introduction of testing under the Basic Customs Duty Exemption Scheme has made India an attractive location for testing. This scheme allows companies to be exempt from paying duties, resulting in significant savings.
In the last one and a half years, ARAI has tested and validated 55 vehicles, including products from new entrants that will be launched in India, as well as vehicles set to be released in the companies’ home countries and other global markets.
Several of these companies are based in Europe. Foreign vehicles for testing under the Basic Custom Duty Exemption Scheme include Toyota, JLR, Stellantis and Vinfast.
GCC Growth Drivers
Another factor fueling growth in this segment is the Global Capability Centres (GCCs). Vijay A. Pankhawalla, a senior deputy director at ARAI, noted that GCCs in the engineering, research, and development sectors are designing and developing products locally that require testing and validation.
ARAI has become a key hub for these GCCs’ testing and prototype needs. To better serve this customer segment, ARAI is establishing a new facility in Bengaluru.
ARAI provides full vehicle testing services for two-wheelers, three-wheelers, four-wheelers, trucks, buses, tractors, construction equipment, and electric vehicles (EVs). It also offers emission certification for a variety of engines, including diesel, petrol, CNG, LPG, and soon, hydrogen and fuel cells.
Additionally, ARAI is focused on standards formulation, research and development, technology transfers, alternative fuels, and innovation.
Expanding Global Infrastructure
With three existing locations, ARAI will inaugurate a fourth at the Symposium on International Automotive Technology (SIAT) 2026, which will be held in Pune from January 27 to 30.
Featuring 18 labs and four centres of excellence in green mobility, fatigue and materials, powertrain design, and intelligent vehicle technology, ARAI’s testing capabilities are on par with international standards, as Mathai stated. Furthermore, ARAI is expanding its infrastructure.
New facilities being inaugurated include a battery testing lab, a cylinder testing facility, an Advanced Driver Assistance Systems (ADAS) test track, a Smart City test environment, and a High Energy Impact Test Facility in Pune.
These developments will enhance ARAI’s capabilities in automotive safety, sustainability, and next-generation mobility solutions, according to the ARAI director.