Tesla's 'Unfulfilled' Promise: Indians Demand Refunds Of $1,000 After Months Of Waiting For EVs

Despite Elon Musk's early interest, these barriers have prevented Tesla from capitalising on India’s growing electric vehicle market

When Tesla CEO Elon Musk invited Indians to preorder the highly anticipated Tesla Model 3, Vishal Gondal, the founder and CEO of Mumbai-based health-tech start-up GOQii, eagerly placed his $1,000 deposit. Eight years later, Gondal still has not received his car, a situation echoed by other early adopters who now question Tesla’s commitment to the Indian market, as reported by news agency AP.

A Long Wait with No Results

Despite paying the deposit, Gondal was left uncertain about when Tesla would officially launch in India or what the final cost would be. As an avid fan of Musk, Gondal was initially enthusiastic about the Model 3 and prepared for the wait. However, as years passed without any update or clear plans from Tesla, he eventually opted for an electric SUV from German automaker Audi in 2023, after reclaiming his deposit with assistance from a friend.

Tesla's delay in entering India, the world's third-largest auto market, appears to be driven by concerns over high import taxes, which could make the cars prohibitively expensive, and the challenges of establishing a manufacturing plant in the country. Despite Musk’s early interest, these barriers have prevented Tesla from capitalising on India’s growing electric vehicle (EV) market.

Market Dynamics and Competition

India's automotive landscape has shifted significantly since Tesla first announced its intentions. Other global and domestic manufacturers have successfully launched their own EVs, capturing the attention of Indian consumers. Meanwhile, Tesla’s own sales have seen a slowdown, with global figures falling year-over-year for two consecutive quarters.

In response to the shifting market, the Indian government reduced import duties on EVs to 15 per cent from the previous 70 per cent-100 per cent for vehicles priced under $35,000, provided the automaker commits to establishing a local manufacturing facility within three years. This move aims to attract companies like Tesla while protecting domestic manufacturers.

Despite this, many Indian consumers and industry experts remain sceptical of Tesla’s ability to compete in the local market, where luxury cars like the Tesla Model 3 would need to deliver exceptional after-sales service to justify their high price tags.

Emerging Players and Future Prospects

While Tesla hesitates, other automakers are gaining ground. BYD, a Chinese manufacturer that entered the Indian market in 2008, has become one of the top EV brands in the country, even with a limited model range. Local giants like Tata Motors dominate the EV sector, holding over two-thirds of the market share, with Mahindra & Mahindra also growing their presence.

For Tesla to succeed in India, industry analysts believe it would need to introduce a more affordable model priced around $30,000, ideally manufactured locally. Tesla’s plans for a small, affordable car by 2025 could align with this need, but the company’s commitment to the Indian market remains uncertain.

The Road Ahead

As Tesla expands its production capacity globally and eyes new markets, the question of whether it can break into India remains open. The company has not yet confirmed any specific plans for building a factory in the country, and its previous attempts to enter the market have been met with scepticism. For now, the Indian EV market continues to evolve without Tesla, as domestic and international players establish their footholds in this rapidly growing sector.

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