• Vishal Gondal, a Tesla fan from Mumbai, preordered the Model 3 in 2016 but never got it, the AP reported.
  • After seven years of waiting, he sought a deposit refund and purchased an Audi instead.
  • Tesla’s entrance into the Indian market has long been stalled by the country’s high EV import taxes.

Some Tesla fans in India have been waiting for years for the cars they preordered, and they’re finally demanding their deposits back.

The Associated Press spoke to people who ordered the electric vehicles, including a startup founder from Mumbai named Vishal Gondal, who said he preordered a Tesla Model 3 in April 2016.

Gondal told Business Insider he was excited about the car’s “cutting-edge EV technology.” But he ended up waiting “nearly eight years with no car.”

“Elon Musk’s tweets and news stories hinted at a potential India launch, but nothing concrete,” Gondal, founder and CEO of GOQii, a healthcare startup, told BI.

Gondal told the AP and BI that he paid a $1,000 deposit for the Tesla. BI viewed a copy of his deposit receipt.

Eventually, he decided to buy an electric SUV from German carmaker Audi instead. He's since secured a deposit refund from Tesla.

Another customer, Mumbai-based designer Hemant Suthar, waited six years before getting a refund in 2023, the Associated Press reported.

Tesla did not immediately respond to a request for comment from BI sent outside regular business hours.

In January 2022, Elon Musk said that Tesla was "still working through a lot of challenges" with the Indian government — including the high import taxes it imposed on electric vehicles.

But in March, India handed Tesla a big win. It lowered import taxes on EVs made by companies that commit to investing at least $500 million and start domestic manufacturing within three years.

Under these new regulations, companies can import 8,000 EVs that cost $35,000 or more yearly at a 15% tax rate. That's down from a 70 to 100% EV tax.

In April, Reuters reported that Tesla was planning to build a new factory in India as part of a $2 to $3 billion investment.

Musk was expected to announce these plans on his trip to India in April. But Musk canceled the trip that month, citing "very heavy Tesla obligations."

Gondal, for his part, said he is still a fan of Musk and admires Tesla's innovation, but the 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 told BI.