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American Focus > Blog > Tech and Science > Tesla loses its charm for India’s loyalists — even as Musk finally delivers
Tech and Science

Tesla loses its charm for India’s loyalists — even as Musk finally delivers

Last updated: July 20, 2025 7:40 am
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Tesla loses its charm for India’s loyalists — even as Musk finally delivers
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Tesla’s long-awaited entry into the Indian market has been met with mixed feelings from some of the brand’s earliest loyalists. Among them is Vishal Gondal, CEO of fitness-tech startup GOQii, who pre-booked a Model 3 in 2016 but now has no plans to purchase a Tesla.

Gondal, along with other early backers like Varun Krishnan of FoneArena and Amit Bhavani of Phoneradar, expressed disappointment with Tesla’s delayed launch in India and the lack of communication with pre-booked customers. Many of them had to chase the company for refunds after waiting for years for the promised Model 3, only to receive the refund just before the formal debut of Tesla in the country.

The opening of Tesla’s first showroom in Mumbai’s Maker Maxity Mall was underwhelming for Gondal and others, who compared it unfavorably to the buzz created by Apple’s store launch in the same location. Despite their early support for Tesla, these loyalists felt neglected and left out of the brand’s official launch event.

Some, like Kawaljit Singh Bedi of Frammer AI, have no regrets about supporting Tesla but are in no hurry to purchase a vehicle after waiting for so long. Others, including Vijay Shekhar Sharma of Paytm, have decided to wait for a larger portfolio of cars before considering a Tesla purchase.

Arun Bhatt, founder of Tesla Club India, highlighted the frustration felt by many reservation holders who waited patiently for years only to be left in the dark about their pre-booked Model 3. The lack of communication and the years-long delay in Tesla’s launch have left these early supporters feeling let down and questioning whether they will receive preferential treatment as promised.

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Despite the disappointment and frustration expressed by some of Tesla’s earliest backers in India, the brand’s formal debut in the country marks a significant milestone in the EV market. As Tesla continues to expand its presence globally, it will be interesting to see how it addresses the concerns of its loyalists and wins over new customers in the Indian market. The country has seen a surge in EV adoption over the past few years, with several automakers introducing electric vehicles to cater to the growing demand for cleaner and sustainable transportation options. However, Tesla’s entry into the Indian market has been highly anticipated by EV enthusiasts and early adopters alike.

Initially, the Tesla Club India was formed as a Tesla awareness club, aimed at promoting the brand and educating people about the benefits of electric vehicles. However, with the delay in Tesla’s launch in the country, the club has evolved into an EV and clean energy awareness club, focusing on promoting sustainable transportation solutions beyond just Tesla.

One of the major concerns among Tesla enthusiasts in India is the lack of clarity on the company’s after-sales service and the establishment of a local Supercharger network. While Tesla announced plans to set up eight charging stations in Delhi and Mumbai before starting deliveries in Q3, it remains unclear whether these will be sufficient to support Tesla drivers in these cities. Additionally, there have been no announcements regarding how Tesla plans to handle after-sales service for its vehicles in India.

The political involvement of Elon Musk and his alignment with former U.S. President Donald Trump have also turned off some Indian drivers. Musk’s public persona has shifted from a visionary entrepreneur to a polarizing political figure, impacting Tesla’s image not only in the U.S. but also in international markets like India. Some early backers of Tesla in India have expressed concerns about Musk’s political involvement and its impact on the company’s reputation.

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Furthermore, the pricing of Tesla’s Model Y in India has raised eyebrows, with the car being imported from China as a Completely Built-Up (CBU) unit. This has led to higher prices due to tariffs, making the Model Y significantly more expensive in India compared to the U.S. market. Despite this, the premium segment in India, where electric cars have a 10% share, presents an opportunity for Tesla to establish itself as a key player in the EV market.

Overall, while the excitement around Tesla’s entry into the Indian market remains high, there are challenges that the company will need to address, including establishing a robust after-sales service network, setting up a local Supercharger network, and navigating the competitive landscape of the Indian EV market. As the EV industry in India continues to grow, Tesla’s presence could pave the way for other automakers to introduce India-centric electric vehicles, driving the adoption of sustainable transportation solutions in the country. India’s electric car market has been dominated by Tata Motors in recent years, but other players, such as China’s MG Motor, are starting to make their mark. According to Bhawani of PhoneRadar, Tesla may not be as impressive as some may think, but it is worth taking a closer look inside for a few minutes.

The premium segment of electric vehicles in India is still relatively niche, but there has been a significant 66 percent year-over-year increase in sales of premium EVs in the first five months of 2025. Brands like BMW, Mercedes-Benz, Land Rover, Volvo, and select models from Hyundai and Kia are catering to this segment, alongside Tesla’s Model Y.

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Abhik Mukherjee, a research analyst at Counterpoint, noted that Tesla’s current pricing is unlikely to impact brands operating in a similar price range. However, the entry of Tesla into the Indian market is expected to generate interest in electric vehicles, especially in a market where two-wheelers dominate the EV space.

While Tesla may not see a high volume of sales initially, its presence is likely to influence the overall EV market in India. According to Khattar of AdvantEdge Founders, Tesla’s entry may prompt consumers to consider electric vehicles from other brands as well.

Despite numerous inquiries, Tesla did not provide any comments on its plans for the Indian market. As the electric vehicle market in India continues to evolve, the introduction of Tesla is expected to have a ripple effect on the industry, encouraging more consumers to consider sustainable transportation options.

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