In 2016, Vishal Gondal, a passionate Tesla fan and entrepreneur from Mumbai, India, was captivated by the buzz surrounding the Tesla Model 3. The promise of cutting-edge electric vehicle (EV) technology was irresistible, and Gondal, the founder and CEO of healthtech startup GOQii, didn’t hesitate to place a $1,000 deposit to secure his dream car. He anticipated a wait of one to two years for delivery, but little did he know that this would be the beginning of a seven-year saga filled with delays, uncertainty, and frustration.
“I initially expected to wait one to two years but ended up waiting nearly eight years with no car,” Gondal said.
Vishal Gondal’s experience mirrors that of many Tesla enthusiasts in India who pre-ordered the Model 3. Despite the initial excitement, the wait turned into years of silence from Tesla, with no direct updates on the delivery timeline. Instead, Gondal was left to rely on Elon Musk’s tweets and speculative news reports that hinted at a potential launch in India but offered no concrete information.
“Even now, there is no official communication from Tesla on the India launch,” Gondal shared, highlighting the ambiguity that surrounded the delivery of his pre-ordered vehicle. This lack of communication left many Indian customers, like Gondal, in a state of limbo, wondering if they would ever receive the car they had eagerly awaited.
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Tesla’s delayed entry into the Indian market can be attributed to the country’s high import taxes on electric vehicles. India has long been a challenging market for international car manufacturers due to its stringent tax policies, which significantly increase the cost of imported vehicles. For Tesla, these challenges were compounded by the complexities of navigating Indian regulations and establishing a sustainable business model in the country.
In January 2022, Elon Musk acknowledged these difficulties, stating that Tesla was “still working through a lot of challenges” with the Indian government. The high import taxes, which ranged from 70% to 100%, were a significant barrier to Tesla’s entry.
However, a glimmer of hope appeared in March 2024 when the Indian government announced a reduction in import taxes for companies willing to invest at least $500 million and commit to domestic manufacturing within three years. This policy change allowed companies like Tesla to import up to 8,000 EVs annually at a reduced tax rate of 15% for vehicles costing $35,000 or more.
After waiting nearly eight years for his Tesla Model 3, Vishal Gondal finally decided to move on. Frustrated by the endless delays and lack of clear communication, Gondal requested a refund of his deposit and opted to purchase an electric SUV from German automaker Audi instead.
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Getting his deposit back, however, was a bit of a task, Gondal said. “Tesla required a lot of documentation, and after extensive follow-up, I was finally able to trace the refund transaction at my bank,” Gondal said. “It wasn’t easy, but persistence paid off.”
“I’m very happy with the car and the service Audi is offering,” Gondal stated, reflecting on his decision to switch brands. His experience serves as a cautionary tale for other potential Tesla customers in India, many of whom have also sought refunds after years of waiting with no delivery in sight.
Despite the setbacks, Vishal Gondal remains a fan of Elon Musk and Tesla’s innovative approach to electric vehicles. However, his experience has made him more cautious. “I would consider purchasing a Tesla in India only if there were a clear and reliable market strategy with strong customer support and when I see the car in India with my own eyes,” he remarked, expressing a sentiment shared by many Indian consumers who are now wary of investing in Tesla without tangible proof of the company’s commitment to the Indian market.
