Tesla’s Appeal Fades Among Indian Fans Despite Musk’s Recent Successes

This week, Tesla inaugurated its first showroom in India, drawing in visitors like Vishal Gondal, an avid enthusiast who reserved a Model 3 in April 2016. Despite his initial excitement, Gondal has decided to hold off on buying a Tesla for the time being.

“I felt a bit let down,” Gondal, the founder and CEO of fitness tech company GOQii, shared after visiting Tesla’s debut showroom in Mumbai’s Bandra-Kurla Complex.

After almost a decade of anticipation for Tesla’s entry into India, Gondal’s enthusiasm waned as he had to ask for a refund in 2023, following numerous failed attempts to retrieve his $1,000 reservation fee.

“Getting a refund was quite a hassle,” he told TechCrunch. “As a joke, had we invested that amount in Tesla’s IPO stock, we would have been better off.”

Gondal is among the first Tesla supporters in India, having made his reservation long before any official announcements. Now, almost ten years later, many early fans are choosing not to participate in Tesla’s launch.

These early supporters were left without their Model 3s after paying the reservation fee shortly after Elon Musk revealed the car for India. Some, like Gondal, found obtaining refunds challenging, with only a few getting their money back just months before the official launch.

“It’s frustrating how long Tesla took. Even though our governmental processes can be complicated, it’s amusing that Starlink received approval much quicker,” commented Varun Krishnan, the operator of the tech blog FoneArena and also an early Tesla supporter in India.

Tesla did not include these loyal fans in the showroom opening invitations and failed to keep them informed about the launch.

The new Tesla showroom spans 6,000 square feet and is located in Maker Maxity Mall, near India’s first Apple store. Gondal, however, remarked that the excitement surrounding Tesla’s showcase was not on par with Apple’s product launches.

“When Apple opened its store in the same location, the buzz it generated was way ahead of Tesla’s,” he noted.

Gondal arrived at the Tesla showroom in his Audi e-Tron, which he purchased last year after a lengthy wait for the Model 3.

“This was the least thrilling launch,” noted Amit Bhavani, the founder of tech blog Phoneradar, who also reserved a Model 3 in 2016.

Bhavani eventually received his $1,000 refund after criticizing Tesla publicly in a YouTube video posted in 2020.

His video sparked discussions among others who had also reserved the Model 3 and were awaiting refunds, Bhavani recalled.

“That was when my admiration for Tesla turned to genuine frustration,” he told TechCrunch.

“The least Tesla could have done is reach out to those who reserved a vehicle, inviting them to a special event. These individuals supported Tesla, and regardless of the amount, it shows their endorsement,” Gondal commented.

Other early supporters, like Kawaljit Singh Bedi, feel no remorse about their endorsement of Tesla, despite only receiving refunds just before this year’s launch. However, they aren’t rushing to purchase a Tesla anytime soon.

“After so many years of anticipation, I’m not keen on being the first to own it. If it took nine years, waiting another six months is easy,” stated Singh, co-founder and CTO of Frammer AI.

“Most early backers are frustrated, including prominent figures like Vishal and Vijay [Shekhar Sharma of Paytm],” Krishnan noted. “People like Vishal or Vijay have considerable influence, and their purchasing decisions often set trends.”

Sharma, founder and CEO of Indian fintech giant Paytm, expressed similar thoughts, indicating he prefers to wait until Tesla offers a broader selection of vehicles.

“It might be too late now,” he remarked. “There are several alternatives that deliver better value for the Indian market.”

The prolonged delay in Tesla’s launch and the absence of invitations for the showroom opening have left some of the brand’s original Indian supporters feeling overlooked, asserted Arun Bhatt, founder of Tesla Club India and a Model 3 pre-booker since 2016.

“You invested money and waited excitedly for ten years, only to be told of a cancellation and a refund without any special treatment. What remains after such a long wait?” he questioned. “There’s been no communication, leaving most reservation holders frustrated.”

Bhatt co-founded the club with fellow Tesla enthusiast and Delhi University student Nikhil Chaudhary in 2019 as an informal group for EV brand fans. However, he noted that due to Tesla’s delays, the club’s focus has shifted from promoting Tesla to raising awareness about EVs and clean energy.

Uncertainty surrounding after-sales and local Supercharger network

A primary concern among early Tesla supporters is the ambiguity regarding the establishment of the Supercharger network and after-sales services. The company announced plans to establish eight charging stations across Delhi and Mumbai before deliveries begin in Q3, but it is still unclear whether these will sufficiently serve Tesla drivers. Additionally, no information has been provided on how Tesla plans to manage after-sales services in India.

“After nine years, my approach to vehicle purchases has become more practical. My priorities have shifted from only the Tesla brand I once admired,” Krishnan remarked.

“The excitement around owning the first model feels dampened, particularly since there isn’t an established Supercharger network,” Kawaljit from Frammer AI added.

Musk’s political affiliations alienate some Indian consumers

Recently, Musk’s public image has evolved from that of a pioneering entrepreneur to a controversial political figure in the U.S., impacting Tesla’s business and stock performance in both the U.S. and major global markets, including India.

“After recent political events, my perception of Elon has shifted considerably,” Krishnan from FoneArena shared.

Kunal Khattar, an EV investor and founder of AdvantEdge Founders, echoed similar sentiments, claiming Tesla has lost “some of its allure” due to Musk’s political affiliations and controversies linked to Trump.

“There used to be a belief that Tesla contributed to conserving the planet and tackling climate issues; that sentiment has faded,” he observed.

Khattar attended the Tesla launch in Mumbai and described the event, similar to Gondal and others, as “uninspiring” and “not reflective of a traditional vehicle launch.”

Fragmentation in the Luxury Market

Tesla has launched the Model Y in India, priced at ₹59,89,000 (around $68,000). This price is considered steep compared to the U.S., where the Model Y starts at $44,990 (approximately ₹38,71,000). The vehicle is presently imported from China rather than produced locally, which incurs tariffs that Tesla must navigate until it establishes domestic manufacturing, leading to increased consumer prices.

In India, the premium vehicle market, ranging from ₹35,00,000 (about $40,700) to ₹1,00,00,000 (around $116,200), represents only 1% of total vehicle sales, roughly 50,000 units. However, electric vehicles now account for nearly 10% of this premium sector, according to Puneet Gupta, director at S&P Global Mobility.

“With Tesla’s entry and potential local manufacturing in India, it could prompt OEMs like BMW, Mercedes-Benz, and Audi to create models specifically designed for India in a few years,” he stated. “The challenge lies in persuading these OEMs to develop products suited for Indian consumers and achieve sufficient volume.”

Overall, electric vehicle sales constituted just 2.5% of the total market in 2024, as reported by Counterpoint, starkly contrasting with the minimal sales figures recorded in 2016 when Tesla first announced its planned entry into the market. This context contributes to the waning enthusiasm surrounding Tesla.

“Currently, buyers can access remarkable and powerful electric vehicles in India. Therefore, Tesla has lost some of its allure, maybe except for a fleeting curiosity,” Bhawani from PhoneRadar commented.

Tata Motors has recently emerged as a leader in India’s EV market, while competitors like MG Motor from China are starting to establish a foothold with new offerings.

The luxury vehicle segment remains niche, yet the increasing number of high-net-worth individuals has led to a 66% year-over-year rise in premium electric vehicle sales during the initial five months of 2025, according to Abhik Mukherjee, a research analyst focused on automotive and IoT at Counterpoint.

Within the premium segment where the Model Y is positioned, brands like BMW, Mercedes-Benz, Land Rover, Volvo, and select Hyundai and Kia models are already well established.

“Given Tesla’s current pricing, it’s questionable whether it can truly disrupt competitors in that price bracket,” Mukherjee stated.

Nonetheless, Tesla’s presence is expected to enhance awareness about electric vehicles in a market primarily dominated by two-wheelers.

“At the very least, consumers may start to consider EVs. Will Tesla achieve notable sales? Likely not. But will Tesla stimulate sales of other EV brands? I firmly believe so,” Khattar from AdvantEdge Founders concluded.