Tesla To Enter India Soon? Automaker Begins Issuing Refunds For Old Model 3 Bookings, Says Report

This development follows a series of signs that Tesla may be positioning itself to re-enter the Indian market after years of delay over tariff disagreements.

The automaker previously stalled its India plans, citing the country's steep import duties on electric vehicles as a major hurdle.

Source : Archello

Tesla Inc. has reportedly begun issuing refunds to Indian customers who placed early bookings for its Model 3, a move that’s being interpreted as a prelude to the company’s long-anticipated entry into the Indian electric vehicle (EV) market.

Citing emails sent to those who made reservations back in 2016, Bloomberg reported that the Elon Musk-led firm is winding down old commitments as it prepares to re-enter the country with a new strategy and updated models.

The communication, sent from the automaker read, “We would like to return your reservation fee for the time being. When we finalise our offerings in India, we will reach out in the market again. We hope to see you back with us once we are ready to launch and deliver in your country.”

The refunds are being processed as Tesla phases out the older generation of the Model 3, the report noted.

Shift in Strategy Amid Trade Talks

This development follows a series of signs that Tesla may be positioning itself to re-enter the Indian market after years of delay over tariff disagreements. The automaker previously stalled its India plans, citing the country's steep import duties on electric vehicles as a major hurdle. However, circumstances may be shifting.

Recently, Musk announced on X that he intends to visit India later this year. This comes at a time when New Delhi and Washington are discussing a broader trade agreement, potentially involving reductions in auto import tariffs. A more accommodating policy framework could pave the way for Tesla’s vehicles to compete more aggressively in the region.

India's EV Market Braces for Disruption

Tesla’s arrival would offer Indian consumers, especially the affluent, aspirational upper-middle class, access to globally sought-after EVs. However, it could also present challenges for domestic auto manufacturers, which are significant employers in the country’s manufacturing sector.

The move to refund old bookings may be a step toward introducing a refreshed lineup tailored to local conditions and market preferences. Tesla has seen a rare dip in global deliveries, marking its first annual decline in over ten years. With Chinese rival BYD Co. continuing to expand its footprint, India’s emerging EV sector represents both an opportunity and a battleground.