Tesla loses its allure for India’s loyalists — at the same time as Musk lastly delivers

Tesla opened the doorways to its first showroom in India this week, and among the many first guests was Vishal Gondal — a longtime Tesla and Elon Musk loyalist who pre-booked a Mannequin 3 in April 2016, simply hours after reservations went dwell. However regardless of displaying up on day one, Gondal says he has no plans to purchase a Tesla now.

“I felt somewhat bit underwhelmed,” stated Gondal, founder and CEO of fitness-tech startup GOQii, after visiting the maiden Tesla showroom in Mumbai’s Bandra-Kurla Complicated.

Over the higher a part of a decade, Gondal held out hope for Tesla’s debut in India. However his pleasure soured when he needed to chase the corporate for a refund in 2023 — sending a number of emails simply to get his $1,000 reservation payment.

“Attempting to get the cash again was an issue,” he informed TechCrunch. “And the joke was, had we invested that cash in Tesla IPO inventory, we’d have made extra money.”

Gondal is among the many earliest backers of Tesla in India — somebody who pre-booked a car lengthy earlier than there have been any ensures. However 9 years on, it appears lots of these early believers should not celebrating the launch and have as a substitute made up their thoughts not to go along with Tesla, not less than on its debut.

These backers by no means bought their Mannequin 3s, for which they paid the reservation payment quickly after Musk promised to launch the automotive within the nation. And a few, like Gondal, even waited and tried onerous for years to get the refund, whereas some bought it in Could, simply a few months earlier than Tesla’s formal debut.

“It’s irritating to see Tesla take so lengthy. I imply, our authorities and processes and crimson carpet are onerous, nevertheless it’s hilarious that even Starlink has gotten approval in a shorter interval,” stated Varun Krishnan, who runs tech weblog FoneArena from Chennai and can be one in every of Tesla’s early backers in India.

Tesla didn’t invite these loyalists to go to its Mumbai showroom, nor did it give them an replace on the launch.

The 6,000-square-foot Tesla showroom is positioned in Maker Maxity Mall, close to Apple’s first retailer within the nation. Nonetheless, Gondal stated Tesla’s retailer was nowhere close to just like that of the Apple retailer launch.

“When Apple launched their showroom in the identical place, the thrill that Apple was capable of create versus the thrill that Tesla was capable of create, there’s a world of distinction,” he stated.

Gondal went to the Tesla showroom in his Audi e-Tron, which he had purchased the earlier yr, after ready a very long time for the Mannequin 3.

“This felt just like the coldest launch,” stated Amit Bhavani, founding father of tech weblog Phoneradar, who additionally pre-reserved the Mannequin 3 in 2016.

Bhavani finally bought the $1,000 refund after criticizing Tesla in a video launched on YouTube in 2020.

The video obtained feedback from dozens of people that had additionally reserved the Mannequin 3 in India and have been ready for a refund, he stated.

“That’s after I felt that the entire love for Tesla turned an actual hatred for Tesla,” he informed TechCrunch.

“The least Tesla may have finished was electronic mail all of the individuals who reserved the automotive earlier and stated, ‘Guys, we’re going to have a particular occasion for you’,” Gondal stated. “These folks actually went out of their method, and despite the fact that let’s say it’s not a giant quantity, it was saying that we help Tesla.”

Some others, like Kawaljit Singh Bedi, stated they haven’t any regrets about supporting Tesla, though they obtained the refund simply earlier than the launch this yr. However, they’re additionally not trying to purchase a Tesla quickly.

“In spite of everything these years I’ve waited, I’m in no hurry to purchase it now and turn out to be the primary one to have it, as a result of what’s the purpose? I waited 9 years? I can wait 9 years and 6 months extra,” stated Singh, co-founder and CTO of Frammer AI.

“Most of them who had put of their early vote of confidence are disenchanted, together with, I do know, Vishal and Vijay [Shekhar Sharma of Paytm],” stated Krishnan. “Folks like Vishal or Vijay, they’re taken with a whole lot of authority. So, if they’re shopping for one thing, there could be 100 folks going by their phrase.”

Sharma, founder and CEO of Indian fintech large Paytm, echoed feedback from different early backers, telling TechCrunch that he wouldn’t go along with Tesla and would slightly wait for a bigger portfolio of vehicles.

“It might be a bit too late,” he stated. “There are such a lot of different choices with price-value math extra suited to India.”

The years-long delay in Tesla’s launch — together with not being invited to the showroom opening — has left a number of the model’s earliest Indian loyalists feeling let down, stated Arun Bhatt, founding father of Tesla Membership India, who additionally pre-booked a Mannequin 3 in 2016

“You paid one thing and also you ardently waited for 10 years, after which out of the blue, they only let you know, we’ll cancel it and we’ll refund, then what occurs — 10 years having waited for one thing, will we be given preferential therapy?” he questioned. “There’s zero communication relating to that. So, eight out of 10 reservation holders are annoyed.”

Bhatt began the membership with one other Tesla fanatic and Delhi College pupil, Nikhil Chaudhary, in 2019 as a casual group for folks having an curiosity within the EV carmaker. Nevertheless, he informed TechCrunch that as a result of delay in Tesla’s launch within the nation, the membership has slowly modified from a Tesla consciousness membership to an EV and clear power consciousness membership.

No readability on after-sales and native Supercharger community

One of many considerations that many Tesla early backers have is the shortage of readability on how Tesla will arrange the Supercharger community within the nation and deal with after-sales care. The corporate introduced that it could set up eight charging stations, equally distributed throughout Delhi and Mumbai, earlier than beginning its deliveries in Q3. Nevertheless, it’s unclear whether or not these might be ample to offer sufficient backing to Tesla drivers in these two cities. Moreover, there are not any bulletins relating to how Tesla plans to deal with after-sales service of its vehicles in India.

“Having gotten older in 9 years, I’ve additionally gotten extra prudent in my car buy course of. I’m extra fearful about sensible issues than simply the Tesla model tag, which I fell in love with 10 years in the past,” stated Krishnan of FoneArena.

“There is no such thing as a actual pleasure to personal the primary automotive, understanding that there is no such thing as a Supercharger community additionally,” Kawaljit of Frammer AI stated.

Musk’s political curiosity and even conflict with Trump are turning off some Indian drivers

In current months, Musk’s public persona has undergone a shift — from a visionary entrepreneur working a number of corporations to a polarizing political determine within the U.S. This transformation has impacted Tesla’s inventory and enterprise not solely in America but additionally in key worldwide markets. India seems to be no exception.

“After the entire elections and the politics, and no matter is occurring, I don’t see Elon with the identical colours as what I used to,” FoneArena’s Krishnan stated.

Kunal Khattar, an EV-focused investor in India and founding father of VC agency AdvantEdge Founders, echoed Krishnan’s sentiment, saying Tesla has misplaced “somewhat little bit of its shine” as a result of a number of components — together with Musk’s political involvement, his alignment with Trump, and the general public fallout that adopted.

“Folks used to suppose Tesla is saving the world, it’s saving the local weather, and this and that, it’s now not there,” he stated.

Khattar was invited to the Tesla launch in Mumbai. Identical to Gondal of GOQii and others, he additionally described it as “underwhelming” and “not like a typical car launch.”

The 1% playground

Tesla has launched the Mannequin Y in India, beginning at ₹59,89,000 (roughly $68,000). Some examine the India pricing with that of the Mannequin Y within the U.S., which begins at $44,990 (₹38,71,000). Nevertheless, the carmaker is importing the automotive from China — slightly than manufacturing it domestically within the nation — one thing that the trade generally refers to as a Utterly Constructed-Up (CBU). This provides as much as tariffs that Tesla is ready to pay for a while, till it decides to arrange a neighborhood manufacturing unit, and thus, prospects must pay an exorbitant worth.

In India, the premium section, which begins from ₹35,00,000 (roughly $40,700) and goes as much as ₹1,00,00,000 (roughly $116,200), includes simply 1% of the entire automotive gross sales in India, roughly 50,000 automobiles. Nevertheless, in that 1%, electrical vehicles have virtually a ten% share up to now, per Puneet Gupta, director, S&P International Mobility.

“With Tesla coming in, and if Tesla actually begins manufacturing in India, perhaps two years down the road, there is no such thing as a doubt about it that it’s going to make a powerful case for all these OEMs [original equipment manufacturers], together with BMW, Mercedes-Benz, and Audi, to make a car for our Indian buyer for the primary time,” he stated. “The issue is that India has by no means been capable of persuade these OEMs that they’ll actually make an India-centric product, and it’ll have ample volumes.”

Total, electrical automotive gross sales in India accounted for simply 2.5% of the entire market in 2024, per Counterpoint. But it surely was “virtually negligible” in 2016, when Tesla initially introduced its entry. This was additionally the explanation why folks confirmed a whole lot of curiosity in Tesla again then.

“Lately, everybody can get a lovely, wonderful, tremendous highly effective electrical car in India. So, Tesla shouldn’t be one thing ‘wow’ worthy, apart from 5-10 minutes, folks ought to ask to only have a look inside it,” Bhawani of PhoneRadar stated.

India’s vehicle large Tata Motors has dominated the nation’s electrical automotive market in recent times, although others — together with China’s MG Motor, which not too long ago signed a three way partnership with Indian conglomerate JSW Group — are beginning to achieve floor.

The premium section stays area of interest within the nation, although the rising variety of high-net-worth people has led to a 66 p.c year-over-year rise within the gross sales of premium EVs through the first 5 months of 2025, Abhik Mukherjee, a analysis analyst for automotive and IoT at Counterpoint, informed TechCrunch.

BMW, Mercedes-Benz, Land Rover, Volvo, and choose fashions from Hyundai and Kia are sitting within the section the place Tesla has introduced the Mannequin Y to the nation.

“Tesla’s present worth level is unlikely to trigger any dent to the manufacturers working inside that worth vary,” Mukherjee stated.

Nonetheless, Tesla’s debut is probably going to attract some buyer consideration to electrical vehicles in a market the place two-wheelers dominate the EV area.

“Folks will not less than put EVs of their consideration set. Will Tesla promote a whole lot of vehicles? I don’t suppose so … Will Tesla enhance the gross sales of different EV manufacturers? I feel so,” Khattar of AdvantEdge Founders stated.