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What’s the story
Tesla has begun refunding early reservations for its Model 3 in India, emails reviewed by Bloomberg have revealed.
The company told customers who had booked their cars back in 2016, that they will return their reservation fee for now.
“When we finalize our offerings in India, we will reach out to the market again,” said the company.
Refunding old reservations signals discontinuation of older Model 3
The refunds for the long-standing reservations are likely because Tesla has decided to discontinue the older generation of its Model 3.
The move comes as an indication that Tesla is gearing up to enter the Indian market after a year of negotiating with high import duties.
Just recently, Tesla CEO Elon Musk announced his visit to India later this year, as India and US continue talks on a potential trade deal with reduced automobile tariffs.
Favorable tariffs could impact Tesla’s long-term plans
A more favorable tariff structure could greatly impact Tesla’s long-term strategy.
Last year, the company’s global vehicle deliveries witnessed a decline for the first time in over a decade, with China’s BYD posing a daunting challenge.
However, bringing Teslas on Indian roads could attract its burgeoning upper-middle-class demographic.
On the flip side, it could also create hurdles for local car manufacturers employing thousands in their factories.