In a landmark move marking its return to focus on India, Tesla Inc. has started processing refunds on early Model 3 bookings by Indian buyers. The development, confirmed through company statements accessed by Bloomberg News, represents a strong pointer to the EV giant’s impending market entry.
The refunds pertain to reservations dating back to 2016, when Tesla first accepted bookings for its Model 3 sedan. Customers have received emails from Tesla, informing them about the refund and assuring that the company will reconnect once its India operations are fully established.
“We would like to refund your booking amount for now. Once we finalise our office setup in India, we will reach out again. We hope you will join us during our launch and delivery timelines,” Tesla wrote in its communication to customers.
The refund process is attributed to the discontinuation of the earlier version of the Model 3, making these bookings outdated. Meanwhile, Tesla’s preparations are gathering pace amid broader trade discussions between India and the United States, which reportedly include talks around reducing import tariffs on electric vehicles.
Tesla’s founder and CEO, Elon Musk, has also announced plans to visit India later this year. His visit is seen as a pivotal step in accelerating Tesla’s India plans, primarily as both nations work towards easing trade barriers that have long hindered the company’s entry.
If India shifts toward a more benign tariff regime, it may transform Tesla’s long-term plans in one of the globe’s most rapidly expanding automobile markets. Industry analysts say India’s growing affluent middle class may be an ideal customer base for Tesla’s cars, though there are worries regarding the impact on local automakers and jobs.
This renewed push into India comes at a critical time for Tesla globally. The company recently reported its first annual decline in deliveries in over a decade, while Chinese EV leader BYD continues to pose stiff competition.
Tesla’s Asia-Pacific headquarters declined to comment outside of Indian business hours when contacted.
As anticipation builds, Tesla’s eventual launch in India could mark a milestone for the country’s evolving EV landscape, bringing both opportunities and new competitive challenges.
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