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Elon Musk’s Tesla to enter India soon? Tesla Inc. is returning reservation fees to Indian customers who had pre-booked its Model 3. This action suggests the Elon Musk-led US electric vehicle manufacturer is preparing to enter India’s automobile market, which ranks as the third-largest globally.
According to a Bloomberg report, the company’s correspondence to customers who placed bookings in 2016 says: “We would like to return your reservation fee for the time being. When we finalize 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.”
Tesla is processing refunds for these long-standing reservations as the earlier version of the Model 3 is being discontinued.
These communications, sent from official Tesla email addresses, indicate the manufacturer’s intention to commence operations in India, following years of discussions regarding the country’s substantial import tariffs, the report said.
Also Read | ‘India a very hot market but…’: Elon Musk-led Tesla says 100% car tariffs make customers anxious
Elon Musk recently announced on X his plans to visit India this year, coinciding with ongoing trade negotiations between India and the US, which could potentially result in reduced automobile tariffs.
A revised tariff framework might influence Tesla’s strategic outlook. The company experienced its first decline in global vehicle deliveries in over ten years, whilst facing significant competition from BYD Co.
The presence of Tesla vehicles in India would appeal to the growing affluent middle-class segment, though it could potentially impact local automobile manufacturers who provide employment to numerous workers in their production facilities.
Meanwhile, in another significant development Tesla has secured a private office space in Mumbai’s Kurla area, adjacent to the Bandra-Kurla Complex business district, demonstrating its commitment to expand operations in India.
Tesla has obtained a 30-seat workspace within a co-working facility at Phoenix Market City with a monthly payment of Rs 3 lakh, according to an ET report.
Also Read | Apple tempted by India! In shift away from China, 70-80 million iPhones to be made in India soon amid Trump tariff tensions
The company has agreed to a one-year tenancy with a three-month lock-in clause, offering short-term adaptability whilst Tesla develops its India strategy. The arrangement between Tesla India Motor & Energy and the co-working provider EFC was finalised earlier this month.
“The new office is likely to support early-stage functions such as local hiring, regulatory coordination, vendor meetings, or backend support for its anticipated entry into the Indian EV market,” according to a source familiar with the situation.
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