Tesla will not be plying on Indian roads anytime soon

According to the plan, Tesla should have ideally launched its products in India this year, however, while replying to the query by a Twitter user, Musk replied that the launch was on hold.

The reason, "Maybe I'm misinformed, but I was told that 30 per cent of parts must be locally sourced and the supply does not yet exist in India to support that."

This is a major let down, considering in 2015; Musk had suggested that Tesla might set up a "Gigafactory" in India to make the batteries for Tesla models, which would be plying on Indian roads.

According to reports, Paytm founder Vijay Shekhar Sharma, Seedfund co-founder Mahesh Murthy, fitness band GOQii's Vishal Gondal and Voonik chief executive Sujayath Ali had all booked the Model 3.

There is, however still hope, as several industry brasses and government officials have clarified, conditions stipulated for local sourcing do not apply for auto firms.

SIAM's Sugato Sen also mentioned that vehicles, which are below the $40,000 mark attract an import duty of 60%, (Tesla's model 3 costs $35,000), moreover, semi-knocked down units and completely knocked down units get 30% and 10% duty, respectively.

A senior official told ET, "We've offered them all help to support manufacturing here. The minister wants India to be Tesla's Asia manufacturing hub and the company was conveyed that during his visit to Tesla factory last year. We'll facilitate whatever help they need."

Tesla is yet to commit to the proposal extended towards it.

Tesla and Indian government should get this hiccup sorted.

Everything looks good from this end, "In case there's a formal proposal, the company will get all incentives that are available for automobile sector under Make in India. In case they seek anything specific we'll try to facilitate it, if permissible under the existing manufacturing policy," said a senior roads ministry official.

Musk, your move.