Indian Tesla fans: seven-year wait and money down the drain

With Tesla electric vehicles booked for many years in India, but with no deliveries and huge delays, the company has failed to live up to the expectations of Indians.

Refusal of reservation

Long-awaited failure

In April 2016, Tesla opened a website for pre-booking its electric vehicles in India . However, despite this, it still does not sell cars in the country, which is the third largest car market in the world. One of the first to pay for the reservation was Vishal Gondall, CEO of healthcare startup GoQii and a longtime fan of Elon Musk. At the time, the service cost $1,000, and the man spared no expense, although it was not clear whether Tesla would start delivering cars to India. After 7 years of fruitless waiting, Gondall finally decided to cancel the reservation, which was only the beginning of a new series of problems. For six months he contacted Tesla with letters, but received no response. He was eventually reimbursed, but never received an apology.

The aspirations of other enthusiasts

According to Rest of World, Vishal Gondall is not the only one who finds himself in a similar situation. Some say they became disillusioned with Tesla because of the futile wait and ended up switching to other electric vehicle manufacturers. However, the most devoted fans continue to patiently wait for their “dream”. "It would be weird to say I'd do it again," says Amit Bhavani, founder of tech blog PhoneRadar, who booked a Model 3 in 2016. "If I see a showroom in Hyderabad with a proper service center, then maybe. But I won't trust Musk anymore."

Bhavani also did not immediately receive a refund - his YouTube video about canceling the Tesla order contributed to the acceleration. He also described his problems in publications on the social network X.

Special attention to influencers

“Someone just took me out of the general queue and returned the money, so that I won’t be indignant anymore,” he said. “I found out that ordinary people who canceled their reservations did not receive money, but only influential people or those who had a blue verification check at that time.”

In 2016, Tesla's decision to open up pre-bookings for the Model 3 in India was met with much excitement. Within hours, several prominent technology and business leaders in the country had booked cars and posted about it on social media. Since then, Musk has announced new dates for the company's entry into the Indian market: summer 2017, 2019, and "if possible" mid-2023.

Indian branch, but no cars

Tesla even registered a subsidiary in India, in Bangalore, in January 2021. But there is still no official channel for buying Tesla cars directly in the country. When Musk announced plans to visit India in early 2024, many expected Tesla to finally talk about manufacturing in the country. However, just two days before the planned trip, Musk canceled it, and a week later he went to neighboring China.

Concerns voiced

"People who booked about 8 years ago don't really care about $1,000," said Yugal Joshi, partner at global research firm Everest. Group. He added that delays in investment (rumored to be in car production and a gigafactory) and Musk's recent trip to India cancelled, coupled with his "proximity to China" are exacerbating the situation in an already uncertain market.

Complicated cancellation procedure

Until a few years ago, the Tesla website had a button to cancel your reservation when you logged in. But now this option has been removed, replacing it with an email ID, says Nikhil Chaudhary, co-founder of the online community Tesla Club India. The community has more than 18,600 followers on X and, among other things, helps people cancel reservations on Tesla electric cars. Sometimes you even have to search for automaker employees on LinkedIn to withdraw your application.

Refund Details

Varun Krishnan, founder of tech blog FoneArena, claims that he was the first to book a Model 3 in India. He told Rest of World that he received a $1,000 refund in January 2022 after months of correspondence with Tesla employees in Hong Kong and California. Tesla's inflation-adjusted refund amount should be $1,300 in 2024, but the company is only returning $1,000.

"We joke about how much that $1,000 would be worth if we invested in Tesla stock instead," said Gondal, who now drives an Audi e-tron. In April 2016, Tesla shares cost $16, but have now increased 10 times.

Tesla India Prospects

For years, Tesla's main problem in India has been the huge import duty that almost doubles the prices of cars. On March 15, the Indian government offered to reduce it by 15% on cars costing $35,000 with an annual volume of 8,000 units if manufacturers set up local production within three years.

Elon Musk at a meeting with Indian Prime Minister Narendra Modi in the United States, June 20, 2023. Photo: India Press Information Bureau

According to a Financial Times report, Tesla is planning to send employees from the US to find a site to build a gigafactory in India worth up to $3 billion. The company is also "looking for a liberalized duty regime," says Mahesh Murthy, founder of venture fund Seedfund and digital marketing company Pinstorm. Murthy booked two Model 3s in 2016 but did not seek a refund because he believes Tesla is bullish on India, the circumstances just aren't right yet. According to him, members of the Society of Indian Automobile Manufacturers "lobbied intensively for Tesla not to be admitted."

Changing market realities

Ankur Bisen, senior partner at consulting firm Technopak, says the market is in a slightly different state than when Tesla planned enter the Indian ecosystem. "2016 was a completely different era in terms of the maturity of electric vehicles. Apart from Tesla, we didn't know anyone."

Tesla Brand Prestige

According to Everest Group's Yugal Joshi, Indians' obsession with Tesla is in line with the global trend. He said the company was "ahead of its peers due to its minimalist design, features, technology adoption and focus on driving experience." "Owning a Tesla can look cool and stand out. People of means are willing to spend a fortune just for those two aspects."

Glossary

• Tesla is an American company that produces electric vehicles and energy storage solutions.
• Elon Musk is an American entrepreneur, engineer, billionaire, founder of Tesla, SpaceX and others.
• Model 3 is an electric car from Tesla, one of its most popular and affordable models.
• GoQii is an Indian startup developing wearable devices and software for health and fitness.
• X is a social network formerly known as Twitter.

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Discussion of the topic – Indian Tesla fans: seven-year wait and money down the drain

2024-05-07

In 2016, Tesla offered Indians a $1,000 down payment for new electric vehicles. Many fans of the brand agreed, but after 7 years they still haven’t received the promised cars. However, getting the money back was not so easy.

Svetlana Sibiryak
Svetlana Sibiryak Copywriter Elbuz

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