When Elon Musk first announced the Tesla Model 3 pre-orders in India back in 2016, many consumers were buzzing with excitement. Among them was Vishal Gondal, the founder and CEO of the health-tech start-up GOQii, who swiftly put down his $1,000 deposit, eager to drive home what he thought would be the future of automobiles.
Fast forward to 2024, and Gondal, like many others who prepaid for their dream electric vehicles (EVs), is left frustrated and confused. Nearly eight years have passed, yet not a single car has been delivered, prompting these hopeful customers to demand their money back.
Initially, Gondal had faith; he thought the wait would be worth it. But with no clear timeline or communication from Tesla about its launch plans or costs, hope turned to disillusionment, leading him to purchase an electric SUV from Audi instead.
The uncertainty surrounding Tesla's entry has been largely attributed to looming high import taxes and the challenges of setting up local manufacturing. Although Musk's interest was piqued, the company seems to have struggled to seize the opportunities presented by India's burgeoning electric vehicle market.
Since 2016, India's automotive scene has evolved dramatically, with numerous other manufacturers stepping up to meet consumer demand. Brands like Tata Motors and Mahindra & Mahindra have rolled out their own EV options, claiming substantial market share, advancing rapidly to captivate Indian consumers.
While Tesla has faced these challenges, India's government has attempted to encourage foreign manufacturers by slashing import duties on EVs from between 70 to 100 percent down to just 15 percent for vehicles priced under $35,000. This measure aims to entice companies like Tesla to establish local manufacturing and innovate more affordable EVs for the Indian market.
Despite this supportive move by the Indian government, many consumers remain doubtful about whether Tesla can effectively compete. Consumers argue the company would need to provide exceptional after-sales service and clear communication to command loyalty, especially when priced as luxury products.
With domestic brands rapidly improving their offerings, Tesla's delay has put it at risk of losing initial early adopters, even as competitors like BYD, which entered India back in 2008, gain traction. BYD has captured significant attention, becoming one of the top EV brands with relatively lower prices compared to what Tesla offers.
Tata Motors stands tall, capturing more than two-thirds of the Indian EV market share. Their aggressive pricing strategy and increasing range of offerings allow them to win over the hearts of Indian consumers, leaving Tesla wondering how to carve its niche.
Industry insiders suggest Tesla needs to pivot quickly. By introducing more affordable models like the rumored $30,000 electric vehicle by 2025 made locally, Tesla could be well-positioned to meet market demand but must first prove its commitment to the Indian market.
Meanwhile, with the electric vehicle market progressing without Tesla, local manufacturers and other international competitors continue to thrive. Tesla's silence surrounding factory locations has led to uncertainty among potential buyers, mothers of skepticism about what the future holds.
The growing competition will not easily give ground without providing Tesla with every reason to act firm. Tesla's road to the Indian market remains cobbled with obstacles, and it’s unclear how the company will respond.
For now, the Indian EV market is on the rise, transforming at breakneck speed. While Tesla remains under the scrutiny of eager consumers, domestic players are making swift advances, ensuring the future of India's electric vehicles may not include the company once deemed the frontrunner.
Will Tesla eventually fulfill its promises to Indian consumers? The road remains unclear as both hopeful buyers and investors wait.
Elon Musk's ambitious plans for India may prove to be lengthy hurdles and likely trials. Until tangible action is taken and results materialize, the promise of Tesla will remain unfulfilled for many within the world's third-largest auto market.
