Tesla’s India Entry Gains Momentum as Early Model 3 Bookings Are Refunded

Image Source : Business Standard

Tesla has begun refunding reservation fees for its Model 3 in India, a move widely seen as a precursor to its official entry into the country’s electric vehicle market. Customers who booked the Model 3 back in 2016 have received emails stating that their reservation fees are being returned, with assurances that Tesla will reach out again once its offerings in India are finalized.

The refunds coincide with Tesla’s decision to discontinue the older generation of the Model 3 globally. This development comes at a time when CEO Elon Musk has announced plans to visit India later this year, fueling speculation that Tesla is preparing to launch sales in the country.

India’s ongoing trade negotiations with the United States, which include discussions on reducing import duties for electric vehicles, could further smooth Tesla’s entry. The company has long deferred its India debut due to high tariffs, which could make its cars prohibitively expensive. However, with India now considering more favorable trade terms, Tesla appears poised to act.

Tesla’s arrival would cater to India’s growing upper-middle-class consumers seeking premium EVs, but it may also challenge domestic automakers like Tata Motors and Mahindra Electric, which play a crucial role in the country’s automotive sector. While no official timeline has been confirmed, industry insiders suggest Tesla’s rollout could begin within the next 12 to 18 months, possibly starting with a newer-generation Model 3 or a locally assembled variant if import taxes are eased.

Sources: Bloomberg, Business Standard, Times Now News