Mumbai — Tesla Inc. has begun refunding early reservation holders in India, a move widely interpreted as a precursor to its long-awaited entry into the world’s third-largest automobile market.
Emails sent to customers who had booked the Model 3 as early as 2016, seen by Bloomberg News, state:
“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 refunds come as Tesla phases out the older generation of the Model 3, suggesting a reset ahead of introducing updated models tailored for the Indian market. The American electric vehicle (EV) giant has long hesitated to enter India, largely due to steep import duties. However, with ongoing trade negotiations between India and the United States — and possible tariff relaxations — the timing now appears increasingly favorable.
Adding to the speculation, Tesla has posted several new job openings in India, including roles for a store manager, sales advisor, and service manager in New Delhi, along with a charging infrastructure developer in Mumbai.
The momentum builds just days after CEO Elon Musk confirmed via a post on X (formerly Twitter) that he plans to visit India later this year. His trip is expected to coincide with the potential easing of import tariffs as part of broader US-India trade discussions — a development that could significantly alter Tesla’s long-term strategy in South Asia.
Globally, Tesla faces mounting pressure. The company’s vehicle deliveries declined last year for the first time in over a decade, amid rising competition from Chinese EV leader BYD Co.
While Tesla’s entry could electrify India’s luxury EV market and cater to its fast-growing affluent class, it also raises concerns about the potential impact on domestic automakers who employ thousands in local manufacturing plants.
An email seeking comment from Tesla’s Asia-Pacific office was not immediately returned.
