There has been speculation for a long time, but now the evidence is mounting: Tesla is on the verge of officially entering the Indian market. After years of waiting and tough negotiations, the company is signaling with refunds of old reservation fees and initial vehicle tests in India: The sales launch is approaching. What Tesla is planning now and why the Indian market is so important, you can read here.
Refunds to customers: Restart for Tesla's India plans
Tesla recently refunded reservation fees to customers who have been waiting since 2016 for their vehicle. The email states:
“We would like to refund your reservation fee for the time being. Once we have finalized our offers for India, we will get back to you.”
This step is considered a strategic restart. Instead of relying on outdated orders, Tesla wants to start anew with updated models and conditions – based on today's product range like the revised Model 3 and the new Model Y.
Model Y already spotted on Indian roads
A particularly strong signal for the upcoming market launch: The Model Y was spotted multiple times this month during test drives in India. The vehicles appear to be from the latest production series, suggesting that Tesla is expecting a market introduction soon – possibly as early as 2025.
Trade agreement as a gateway for Tesla
A major obstacle for Tesla's previous start in India was the extremely high import duties of up to 110% on new vehicles. But that could soon change:
After a meeting between Elon Musk and Indian Prime Minister Modi earlier this year, a possible trade agreement was negotiated that could lower import duties for electric vehicles. If successful, Tesla would have significantly better chances of positioning its vehicles at attractive prices.
First stores planned: Mumbai and New Delhi in focus
Tesla is said to have already selected locations for its first two stores – in Mumbai and New Delhi , two of the economically most significant cities in India. Additionally, there are currently job postings for positions in sales, service, and logistics – clear signs of a concrete market entry.
Large market with great potential – and challenges
India is the third-largest car market in the world and has a growing middle class with an interest in premium electric vehicles. This offers the country enormous potential for Tesla – especially as a complement to markets like China, Europe, and North America.
At the same time, resistance from local manufacturers is to be expected, who partly secure tens of thousands of jobs in the Indian automotive industry. Tesla's market entry is therefore likely to be closely watched economically and politically.
Conclusion
After years of stagnation, it finally seems to be happening: Tesla is seriously preparing for the sales launch in India. Refunds, tests on Indian roads, store planning, and political approaches indicate an imminent market launch – perhaps as early as 2025. If India actually lowers import duties, Tesla could gain a foothold in one of the most exciting growth markets in the world.