Tesla’s long-awaited entry into the Indian market appears to be on the horizon, as new developments suggest the automaker is getting closer to an official launch.
Emails sent by Tesla last week to customers who reserved vehicles as early as 2016 reveal that the company is refunding reservation fees. The emails, viewed by Bloomberg, explained that Tesla would return the fees for now, but would reach back out to customers once it finalizes its offerings in India.
“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,” the email read.
The emails are likely Tesla’s way of resetting its plans to align with updated vehicle offerings. Many Indian customers had reserved nearly a decade ago, even before the official launch of the Model 3 in North America. Tesla has of course refreshed the design of the Model 3 several times since then, with the most significant update coming last year.
There is also a new version of the Model Y, which has been spotted testing on Indian roads this month — another strong indicator that sales could soon begin.
Camouflaged new Model Y spotted testing in India https://t.co/0MZCWPgZ3C
— Drive Tesla (@DriveTeslaca) April 15, 2025
Tesla’s entry into India is years in the making and comes after negotiations on a potential trade deal that could lower India’s steep import tariffs on vehicles, which currently sit as high as 110%. Lower tariffs would significantly improve Tesla’s ability to competitively price its vehicles in the country.
Tesla CEO Elon Musk met with India’s Prime Minister earlier this year, and shortly afterwards Tesla started hiring for positions in India and has reportedly selected locations for its first two stores, one in Mumbai and one in New Delhi.
India represents a significant growth opportunity for Tesla, as it is the world’s third-largest auto market with a rapidly growing appetite for premium electric vehicles (EVs). However, Tesla’s arrival could create tension with domestic manufacturers, many of whom employ thousands across the country’s auto industry.
NEWS: @elonmusk is meeting with India’s Prime Minister Narendra Modi in Washington pic.twitter.com/T2fzP0u0p9
— Drive Tesla (@DriveTeslaca) February 13, 2025
