Tesla India: Losing Appeal Despite Musk's Delivery?

Tesla's Indian Debut: Lost Enthusiasm Among Early Backers

This week marked the opening of Tesla’s first showroom in India. Among the initial visitors was Vishal Gondal, a dedicated Tesla enthusiast and follower of Elon Musk, who had placed a pre-order for a Model 3 in April 2016, shortly after reservations became available.

Initial Disappointment

Despite being among the first to visit the Mumbai showroom in Bandra Kurla Complex, Gondal expressed he currently has no intention of purchasing a Tesla vehicle. He described feeling “a little bit underwhelmed” by the experience.

For nearly a decade, Gondal anticipated Tesla’s arrival in the Indian market. However, his anticipation diminished when he encountered difficulties in obtaining a refund for his $1,000 reservation fee in 2023, requiring numerous email exchanges.

Refund Challenges and Missed Opportunities

“Securing the refund proved to be problematic,” Gondal shared with TechCrunch. “Ironically, had that money been invested in Tesla IPO stock, we would have realized a greater return.”

Gondal represents a segment of Tesla’s earliest supporters in India – individuals who committed to a vehicle purchase well before any firm launch commitments were made. However, after nine years, many of these initial believers are reconsidering their allegiance to the brand.

Delays and Lack of Communication

These early adopters did not receive the Model 3s they reserved, and some, like Gondal, faced prolonged struggles to reclaim their reservation fees. Refunds were only issued in May for some, just months before Tesla’s official launch.

Varun Krishnan, who manages the tech blog FoneArena from Chennai and was also an early Tesla backer, noted the lengthy delay. “The protracted timeline is frustrating. While navigating Indian government processes can be challenging, it’s noteworthy that Starlink received approval in a shorter timeframe.”

A Less-Than-Stellar Launch Experience

Tesla did not extend invitations to these loyal customers to visit the Mumbai showroom, nor did they provide updates regarding the launch. The 6,000-square-foot showroom is situated within the Maker Maxity mall, close to Apple’s first Indian store.

However, Gondal observed a significant disparity in the launch atmosphere. “The level of excitement generated by Apple’s launch was vastly different from that of Tesla’s.”

Shifting Loyalties

Gondal arrived at the Tesla showroom in his Audi e-Tron, a vehicle he purchased after waiting for the Model 3. Amit Bhawani, founder of the tech blog Phoneradar and another 2016 Model 3 pre-order holder, described the launch as “the coldest launch” he’d witnessed.

Bhawani ultimately received his $1,000 refund after publicly criticizing Tesla in a 2020 YouTube video. This prompted numerous individuals who had also reserved the Model 3 in India to voice their refund concerns.

From Admiration to Discontent

“That’s when the initial enthusiasm for Tesla transformed into genuine dissatisfaction,” Bhawani explained to TechCrunch.

Gondal suggested a simple gesture could have improved the situation. “At the very least, Tesla could have emailed all early reservation holders, offering a special event. These individuals demonstrated their support, and even a small gesture would have acknowledged that.”

Continued Wait or New Options?

Some, like Kawaljit Singh Bedi, maintain no regrets about their initial support, despite receiving their refund shortly before the launch. However, they are not currently planning to purchase a Tesla.

“Having waited for so many years, I’m not in a rush to be among the first owners. I can easily wait another nine months, or even longer,” said Bedi, co-founder and CTO of Frammer AI.

Influencer Opinions Matter

Krishnan noted the disappointment among early supporters, including prominent figures like Vishal and Vijay Shekhar Sharma of Paytm. “The opinions of individuals like Vishal or Vijay carry significant weight. Their endorsement could influence many potential buyers.”

Sharma, CEO of Paytm, echoed these sentiments, stating he would prefer to wait for a broader range of Tesla models and explore options with more favorable price-value propositions for the Indian market.

A Lost Opportunity for Connection

The extended delay and lack of engagement have left many early Indian Tesla enthusiasts feeling undervalued, according to Arun Bhat, founder of Tesla Club India, who also pre-booked a Model 3 in 2016.

“After a decade of waiting and a partial payment, shouldn’t early supporters receive preferential treatment? There has been no communication regarding this. Approximately eight out of ten reservation holders are frustrated.”

Evolving Focus of the Tesla Club India

Bhat co-founded the club in 2019 with Nikhil Chaudhary, a Delhi University student, as an informal group for those interested in Tesla. However, due to the launch delays, the club’s focus has shifted towards broader EV and clean energy awareness.

Concerns Regarding After-Sales Support and the Supercharger Network in India

A significant worry for many of Tesla’s initial supporters in India centers around the ambiguity surrounding the establishment of a Supercharger network and the provision of after-sales service within the country.

Prior to commencing deliveries in the third quarter, Tesla declared its intention to install eight charging stations, strategically located between Delhi and Mumbai.

However, it remains uncertain if this number of stations will adequately support Tesla owners in these metropolitan areas.

Furthermore, no official statements have been released detailing Tesla’s strategy for servicing vehicles post-purchase in India.

Krishnan, from FoneArena, expressed a shift in priorities, stating, “With time, my approach to vehicle purchases has become more considered.

Practical considerations now outweigh the allure of the Tesla brand, which initially captivated me a decade ago.”

Bedi, representing Frammer AI, echoed this sentiment, noting, “The absence of a robust Supercharger network diminishes the appeal of being an early adopter.”

Growing Practical Concerns

The lack of clarity on essential support infrastructure is tempering the enthusiasm of potential Tesla buyers.

Previously, the prestige of owning a Tesla was a primary driver for many.

Now, logistical concerns regarding charging and maintenance are becoming increasingly important factors in the decision-making process.

• Supercharger Availability: The limited number of planned charging stations raises questions about convenience and accessibility.
• After-Sales Service: The absence of a defined service plan creates uncertainty for owners regarding maintenance and repairs.

These factors are leading some early supporters to reassess their interest in purchasing a Tesla in India.

Shifting Perceptions of Elon Musk Impact Tesla's Appeal Among Indian Consumers

Over the past few months, Elon Musk’s public image has evolved. He is increasingly perceived not just as an innovative business leader overseeing numerous ventures, but as a controversial political personality within the United States. This change in perception has had repercussions for Tesla’s stock performance and commercial success, extending beyond the American market to crucial international regions.

India is demonstrably affected by these developments. Krishnan, from FoneArena, stated that his view of Musk has altered following recent political events and public statements.

Kunal Khattar, a venture capitalist specializing in electric vehicles and founder of AdvantEdge Founders, shares a similar viewpoint. He believes Tesla has experienced a reduction in its appeal, attributable to multiple influences.

These influences include Musk’s increased political activity, his perceived association with Donald Trump, and the subsequent public disagreements that have arisen.

Khattar explained that the earlier perception of Tesla as a globally beneficial company dedicated to environmental preservation is diminishing. The narrative of Tesla as a force for positive change is no longer as prevalent.

He attended the Tesla launch event in Mumbai and, like Gondal of GOQii and other attendees, found the event to be comparatively subdued. It did not possess the characteristics of a conventional vehicle unveiling.

A New Entry into India's Automotive Landscape

Tesla has begun offering the Model Y in India, with a starting price of ₹59,89,000, which translates to roughly $68,000. Comparisons are being drawn between this pricing and the Model Y’s base price in the United States, which is $44,990 (approximately ₹38,71,000).

However, it’s important to note that these vehicles are being imported from China as completely built-up (CBU) units, rather than being manufactured within India. This import strategy results in additional tariffs for Tesla.

These tariffs will remain in effect until the company potentially establishes a local manufacturing facility, leading to a higher cost for Indian consumers.

The Premium EV Market in India

The premium car segment in India, defined as vehicles priced between ₹35,00,000 ($40,700) and ₹1,00,00,000 ($116,200), currently represents just 1% of the total car sales volume. This equates to approximately 50,000 vehicles sold annually.

Within this 1% segment, electric vehicles already hold a significant share of nearly 10%, according to Puneet Gupta, Director at S&P Global Mobility.

Gupta suggests that Tesla’s potential move to manufacture vehicles in India, possibly within two years, could incentivize other original equipment manufacturers (OEMs) – including BMW, Mercedes-Benz, and Audi – to develop India-specific models.

He further explains that a key challenge has been convincing these OEMs that a product tailored for the Indian market could achieve sufficient sales volumes.

Growth of the Indian EV Market

Electric car sales in India reached 2.5% of the total market share in 2024, as reported by Counterpoint. This represents a substantial increase from 2016, when Tesla first announced its entry into the Indian market and EV adoption was “almost negligible.”

The initial announcement generated considerable interest due to the limited availability of electric vehicles at that time.

Bhawani of PhoneRadar notes that the current market offers a wide range of compelling electric vehicles. He suggests that Tesla’s appeal is diminishing, beyond a brief initial curiosity.

“People should simply examine the interior of a Tesla, rather than being overly impressed,” Bhawani stated.

Competition and Market Dynamics

Tata Motors currently dominates the Indian electric car market. However, other manufacturers, such as China’s MG Motor – through a recent joint venture with JSW Group – are gaining traction.

Sales of premium EVs have seen a year-over-year increase of 66% during the first five months of 2025, driven by a growing number of high-net-worth individuals, according to Abhik Mukherjee, a research analyst at Counterpoint.

Tesla’s Model Y now competes with vehicles from BMW, Mercedes-Benz, Land Rover, Volvo, and select models from Hyundai and Kia within this premium segment.

Mukherjee believes that Tesla’s current pricing is unlikely to significantly impact the existing brands operating in that price range.

Despite this, Tesla’s arrival is expected to raise awareness and consideration of electric vehicles in a market largely dominated by two-wheelers.

Khattar of AdvantEdge Founders predicts that Tesla’s presence will encourage consumers to include EVs in their purchasing considerations. He doesn’t anticipate substantial Model Y sales but believes it will boost sales for other EV brands.

Tesla has not yet provided a response to requests for comment.