In April 2016, Elon Musk invited Indians to pre-order the Tesla Model 3, sparking excitement across the country. Enthusiasts like Vishal Gondal, founder and CEO of health-tech startup GOQii, eagerly paid a $1,000 deposit, reported AP. Despite not knowing the launch date or final price, Gondal was willing to wait.
However, eight years later, many, including Gondal, have yet to receive their cars, leading to frustration and skepticism. Production and market challenges India, the world’s third-largest auto market, presents unique hurdles. With the average car price in 2023 at $14,000, compared to $47,000 in the US, a $40,000 Tesla Model 3 is positioned as a luxury vehicle in India.
This pricing, combined with high import duties and the need for extensive after-sales service, complicates Tesla's market entry, reported AP. Gondal eventually purchased an electric SUV from Audi, getting his $1,000 deposit back in January 2023 after intervention from a friend. Other early adopters, like Mumbai-based designer Hemant Suthar, also retrieved their deposits, expressing doubts about Tesla’s minimalist approach versus the luxury EVs now available.
Government policy and market dynamics To attract international automakers while protecting local brands like Mahindra and Maruti Suzuki, India reduced import duties on EVs from 70%-100% to 15% for cars under $35,000, provided the automaker commits to local manufacturing . Despite this, Musk’s 2019 concerns about high import duties potentiall.