Tesla Bookings Cancelled In India, Refunds Initiated: All Details Here

Updated: Thursday, May 15, 2025, 10:14 [IST]

Tesla's anticipated entry into the Indian market, which has faced delays since 2016, now seems likely in 2025. Initially, Tesla began accepting pre-orders for the Model 3 in India in 2016, targeting cities like Delhi, Mumbai, and Bengaluru. However, due to high import duties and other challenges, the launch was postponed. Tesla is now cancelling these old reservations and issuing refunds.

Tesla's Strategic Moves in India

In a recent email to early Model 3 reservation holders, Tesla explained that many of its products have evolved over time. The original Model 3 from 2017 has undergone several updates, including a significant facelift known as the Highland refresh in 2023-2024. This communication suggests Tesla is gearing up for a fresh start in India.

Tesla is refunding reservation fees and plans to re-enter the market once its product lineup for India is finalised. This move hints at a potential launch soon. Reservation holders are asked to provide banking details for prompt refunds.

Indicators of a 2025 Launch

Several developments suggest Tesla's launch in India by 2025. Notably, Tesla has secured its first showroom location at the Bandra Kurla Complex (BKC) in Mumbai. BKC is a prime commercial area where Tesla has leased approximately 4,000 square feet with a monthly rent of Rs 35 lakh and an annual increase of 5%. Similar showrooms are planned for other cities like Delhi.

The homologation process for Model 3 and Model Y has begun, indicating another step towards launching in India. Initially, these models will be imported as Completely Built Units (CBUs). Depending on demand and market response, local assembly or manufacturing might follow. Currently, Tesla manufactures outside the US in China and Germany; CBUs for India will likely come from Berlin.

Favourable Policies and Trade Talks

Tesla and other global electric vehicle brands stand to gain from India's relaxed EV import policy. Import duties have been reduced from 70–100% to just 15% for premium EVs. This change benefits companies using the CBU route initially.

Additionally, discussions about a trade agreement between India and the USA are progressing positively. An announcement could come by year-end, potentially benefiting companies like Tesla further.

DriveSpark Thinks

Tesla's strategic moves and favourable policy changes indicate a promising future for its entry into the Indian market by 2025. These developments suggest that Indian consumers may soon experience Tesla's innovative vehicles firsthand.