Tesla’s entry into India has been delayed for a long time. In 2016, when the company first started advance booking of Model 3 in India, many people from big cities like Delhi, Mumbai and Bangalore had made bookings. But due to tax complexities and other reasons, the car was never delivered in India. Now Tesla has decided to cancel all old bookings and customers are being refunded their money.
What did Tesla say on cancelling bookings?
In an email sent to an old booking customer, Tesla has said that there have been many changes in their cars over the years and new vehicles have also been introduced. The original Model 3, launched in 2017, is no longer the same as before. It has undergone many updates from time to time and recently its major facelift version ‘Highland’ has been introduced.
The company has clarified that the existing bookings are now based on old products, which are no longer available in the market. Therefore, these refunds are being made. It has also been said that after the products are finalised in India, the company will contact the market again. That is, it is possible that Tesla will start booking in India again in the coming time.
Can Tesla come to India in 2025?
There are many indications that Tesla can enter India by 2025. A big step was that the company has rented 4,000 square feet of space in Mumbai’s Bandra Kurla Complex (BKC), where its first showroom will be built. This place is considered to be one of the most expensive commercial areas in India. The monthly rent of this place is said to be around Rs 35 lakh.
Not only this, Tesla is also planning to open similar showrooms in other major cities like Delhi. The company has started the testing (homologation) process of its Model 3 and Model Y in India. In the first phase, these vehicles will be directly imported (as CBU) and brought to India.
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Where will Tesla’s vehicles come from?
Tesla will initially import its cars to India from the Gigafactory in Germany. After this, if sales increase, the company may consider setting up an assembly unit or manufacturing unit in India – as it has done in China and Germany.
The Indian government has also recently reduced the import duty on electric cars. Earlier this tax used to be 70% to 100%, but now it has been reduced to only 15% on premium electric vehicles. This new rule will benefit not only Tesla, but other foreign EV companies will also get it.
India-US trade agreement will also be helpful
Talks are going on to form a new trade agreement between India and America, which if finalized by the end of the year, can provide great relief to companies like Tesla. This will remove many problems related to tax, trade and logistics.
Tesla Y Juniper could be the next offering
Now that the company has discontinued the old models, it is believed that the Model Y Juniper could be a major option among the new vehicles to be introduced in India in 2025. This car is an updated version of the Model Y in which major changes have been made in both design and features.
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What should be the conclusion?
Cancellation of old bookings by Tesla, opening of showroom in Mumbai, starting testing of new vehicles and tax relief by the government – all these steps indicate that 2025 could be the year of Tesla’s entry into India. Soon new bookings may open and Indian customers will be able to experience the world’s most popular electric car.