Tesla Inc.’s India office has begun refunding reservation fees to customers who pre-booked the Model 3 back in 2016, according to emails seen by Bloomberg News. The move has fueled speculation that Tesla is preparing for an official launch in the world’s third-largest automobile market.
“We would like to return your reservation fee for the time being,” the email stated. “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 are being issued as Tesla discontinues the older generation of the Model 3. The emails, sent from official Tesla domains, represent the latest indication that Elon Musk’s company is serious about entering the Indian market after years of delays, largely due to high import duties.
Background and Timing:
- Tesla’s move comes just days after Musk announced via X (formerly Twitter) that he plans to visit India later this year.
- India and the United States are currently negotiating a potential trade deal that could lower tariffs on automobiles — a development that would make Tesla’s entry far more viable.
- Tesla’s global vehicle deliveries fell last year for the first time in over a decade, amid stiff competition from Chinese rival BYD Co.
Implications: For India, Tesla’s entry would appeal to its growing upper-middle class but could present challenges to local automakers who employ thousands across manufacturing hubs.
An email inquiry to Tesla’s Asia-Pacific office did not receive an immediate response.
