Tesla’s Launch in India: A Disappointment for Early Supporters

The recent opening of Tesla’s first showroom in India has stirred mixed emotions among its early supporters. Among the first to visit was Vishal Gondal, a dedicated fan who had eagerly pre-ordered a Model 3 back in 2016. However, despite his long-standing loyalty, Gondal expressed disappointment, stating he has no intention of purchasing a Tesla now.

“I was expecting something extraordinary, but I left feeling a bit let down,” Gondal remarked after his visit to the new showroom located in Mumbai’s Bandra-Kurla Complex.

For nearly a decade, Gondal held onto the hope of Tesla’s arrival in India, but his enthusiasm waned significantly when he faced difficulties in obtaining a refund for his reservation fee in 2023. After numerous emails, he finally managed to retrieve his $1,000 deposit.

“It was frustrating to chase them for my money,” he shared. “Had we invested that amount in Tesla’s IPO, we would have seen a much better return.”

Gondal is not alone in his sentiments. Many early supporters who had pre-ordered the Model 3 are now feeling disillusioned. They had anticipated the launch for years, only to be met with delays and a lack of communication from the company.

“It’s disheartening to see how long it took for Tesla to enter the Indian market. Other companies, like Starlink, have received approvals much faster,” commented Varun Krishnan, another early supporter and tech blogger from Chennai.

Interestingly, Tesla did not extend invitations to these loyal customers for the showroom opening, nor did they provide any updates regarding the launch.

The new showroom, spanning 6,000 square feet, is situated in Maker Maxity Mall, close to the first Apple store in India. However, Gondal noted that the excitement surrounding Tesla’s launch was nowhere near the buzz generated by Apple’s debut.

“The difference in the atmosphere during Apple’s launch compared to Tesla’s is striking,” he said.

Gondal arrived at the Tesla showroom in his Audi e-Tron, a vehicle he purchased after waiting for the Model 3.

“This felt like the most lackluster launch I’ve ever experienced,” said Amit Bhawani, another early backer who also pre-reserved a Model 3 in 2016.

Bhawani eventually received his refund after publicly criticizing Tesla in a YouTube video, which resonated with many others in the same situation.

“That was the moment when my admiration for Tesla turned into frustration,” he admitted.

Gondal expressed that Tesla could have at least acknowledged the early supporters by inviting them to a special event. “Those who believed in Tesla from the start deserved some recognition,” he stated.

Some early supporters, like Kawaljit Singh Bedi, remain indifferent about their past support, even though they received refunds just before the launch. “After waiting so long, I’m not in a rush to buy now. I can wait even longer,” he remarked.

Many early supporters, including influential figures like Vijay Shekhar Sharma, have voiced their disappointment and are opting to wait for a broader range of vehicles before considering a purchase.

Sharma noted, “It might be too late for Tesla. There are numerous alternatives that offer better value for money in India.”

The prolonged delay in Tesla’s entry and the lack of communication have left many of its earliest Indian supporters feeling neglected. Arun Bhatt, founder of a Tesla enthusiast club, expressed his frustration over the lack of preferential treatment for those who had waited so long.

“After waiting for nearly a decade, we expected some acknowledgment, but there has been none,” he lamented.

Bhatt’s club, initially focused on Tesla, has shifted its focus to broader electric vehicle and clean energy awareness due to the delays.

Concerns also linger regarding Tesla’s plans for establishing a Supercharger network and after-sales service in India. While the company announced plans for eight charging stations in Delhi and Mumbai, many are skeptical about whether this will be sufficient for the growing number of Tesla drivers.

“As I’ve matured over the years, my priorities have shifted. I’m more concerned about practicality than just the Tesla brand,” Krishnan stated.

With the recent changes in Musk’s public persona, many feel that Tesla has lost some of its allure. Kunal Khattar, an investor focused on electric vehicles, echoed this sentiment, noting that the brand’s image has been tarnished by Musk’s political affiliations.

“People used to see Tesla as a beacon of hope for the environment, but that perception has faded,” he remarked.

Khattar, who attended the launch, described it as underwhelming and not reflective of a typical vehicle unveiling.

Tesla has introduced the Model Y in India, priced at approximately ₹59,89,000 (around $68,000). This price point has raised eyebrows, especially when compared to the Model Y’s starting price in the U.S., which is significantly lower. The importation of the vehicle from China adds to the costs, leading to higher prices for Indian consumers.

In India, the premium car segment, which includes vehicles priced from ₹35,00,000 (approximately $40,700) to ₹1,00,00,000 (approximately $116,200), constitutes only 1% of total car sales. However, electric vehicles have begun to carve out a niche within this segment.

Experts believe that if Tesla establishes local manufacturing in India, it could significantly impact the market and encourage other manufacturers to create vehicles tailored for Indian consumers.

Currently, electric vehicle sales account for just 2.5% of the total market, a significant increase from negligible figures in 2016 when Tesla first announced its entry.

As the electric vehicle landscape evolves, many brands are emerging to compete with Tesla, including Tata Motors, which has dominated the market in recent years.

Despite the challenges, Tesla’s entry may still draw attention to electric vehicles in a market where two-wheelers currently dominate.

“While Tesla may not sell a large number of cars, it will certainly raise awareness for electric vehicles,” Khattar concluded.

Tesla has not responded to requests for comments regarding the launch and the sentiments of its early supporters.

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