Tesla, one of the world’s leading electric vehicle (EV) companies, has started refunding the booking amount for its Model 3 to customers in India who had reserved the car about nine years ago.
This move is seen as a hint that Tesla may soon launch its operations in India.
Booking Refund Email Sent to Customers
According to a Bloomberg News report, Tesla sent an email to Indian customers stating, “We want to refund your reservation fee.
We hope you will come back when we finalize our offer in India.” These bookings were made in 2016 for the earlier version of the Model 3, which the company no longer sells.
Increased Competition and Falling Profits
Tesla is currently facing strong competition in the global EV market. This has affected its sales and profit margins. In the first quarter of this year, Tesla’s net profit dropped by 71%.
At the same time, Chinese automaker BYD has rapidly grown its EV sales and has even overtaken Tesla in revenue from electric car sales. BYD sells both electric and hybrid vehicles, while Tesla only offers fully electric cars.
Tesla’s Plans for India
Tesla is actively preparing to enter the Indian market. The company has leased about 4,000 square feet of space in the Maker Maxity building at Mumbai’s Bandra Kurla Complex (BKC), where it may open its first showroom.
Reports suggest that Tesla could start business in India in the second half of this year.
PM Modi’s Conversation with Elon Musk
Earlier this month, Prime Minister Narendra Modi spoke on the phone with Elon Musk, and following the conversation, Musk hinted that he might visit India soon.
This has added to the expectations of Tesla’s entry into the country.
Concerns Over Import Duties
Tesla’s Chief Financial Officer, Vaibhav Taneja, recently said that the company is reviewing its plans to enter what he called a “very profitable” market.
However, he also pointed out that the 100% import tariff on cars in India is making it difficult for customers to buy Tesla vehicles.
Despite this, Tesla’s arrival is expected to intensify competition in India’s growing EV market.
