Tesla Model 3 India launch could be delayed

Tesla opened the bookings of the Model 3 with much fan fare last year. In fact, the company took bookings from prospective India buyers and the launch was planned for 2017 year. But it looks like, India needs to wait some more to get its first Tesla. 

In a query on Twitter, one of the users asked Elon Musk, CEO, Tesla about his India launch plans. The top honcho said “Maybe I'm misinformed, but I was told that 30% of parts must be locally sourced and the supply doesn't yet exist in India to support that”. Elon Musk is talking about India’s FDI policy, where a single brand retailer needs to source 30 per cent parts from within the country. Unlike the rest of the car manufacturers, Tesla sells its cars directly through the company and not through any car dealers. 

@TheAvinashSingh Maybe I'm misinformed, but I was told that 30% of parts must be locally sourced and the supply doesn't yet exist in India to support that.

— Elon Musk (@elonmusk) May 22, 2017

As a result, it will be difficult for Tesla to launch any of their cars in India. The company either needs to source some parts in India or change their sales strategy and appoint dealers in the country to sell cars. If none of these work, the American manufacturer would need to wait for a change in the FDI policy for single brand retailers which can take years. So people who have booked the Model 3 in India would need to wait a bit more before driving one on Indian roads.