In a surprising but potentially good development, Tesla has now begun to cancel and provide refunds for its earliest reservations in India—reservations dating back as far as 2016 when buyers from metro cities such as Delhi, Mumbai, and Bengaluru expressed interest in the highly anticipated Model 3.
Unfortunately, Tesla's debut in India never came to fruition, largely because of prohibitively high import duties and a lack of coherent policy alignment. Nine years later, that chapter is being closed.
In emails sent to the earliest reservation holders, Tesla revisited the point that the product line for Tesla has evolved drastically since the first reservations were made. The first Model 3 vehicles launched worldwide in 2017 and even since then have gone through many updates, including the Highland facelift in 2023–24.
Given this evolution and changes, Tesla felt it did not make sense to carry forward outdated bookings now.
Customers are being asked to submit their banking information so Tesla can start processing refunds. It is also important to note that Tesla also expressed in its emails that they will re-engage with the Indian market again once its product offerings are finalized—an appropriate indication that there are ongoing plans.
Why 2025 Could Finally Be The Year
Apart from a variety of cancelled bookings, a few developments also point to a Tesla entry into India being imminent. The company has leased a 4,000 sq. ft. showroom in BKC (Bandra Kurla Complex), something of a premium commercial hub in Mumbai. The lease is for ₹35 lakh a month, therefore making it very clear this is a serious commitment from Tesla.
Reports suggest that similar showroom plans are also in the works for Delhi and other major cities. Plus, the company has begun the homologation process for Model 3, and Model Y, so we can expect these models in India first--likely as CBUs from Berlin Gigafactory.
In addition, there has also been a new relaxed EV import policy from the Indian government that benefits Tesla and all EV brands. The import duties on premium electric cars have now been reduced to just 15% from 60%. This, combined with an upcoming India–US trade deal, clearly signals the Indian Government's changes in trade policy, which should provide a better platform for Tesla's arrival.
With infrastructure in place, government policy being aligned, and product approvals occurring, a Tesla launch in India in 2025 now seems more likely than ever.
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