Rich Indians invest a lot in UK "India has remained the second largest investor in the UK for another year as revealed in the UK's Department for International Trade Foreign Direct Investment (FDI) 2021/22 figures."
I think the new policy was to convince Tesla to open factories here and create jobs but Tesla's entry level price points itself will be in the premium category of these Chinese car makers and will allow them to get a foothold. Not sure Mahindra and Tata can compete with them yet.
It seemed to be designed to give Tesla a token presence with a maximum of 8k CKD imported cars allowed under the 'scheme' so they stop griping about high taxes but given the speed at which Chinese establish manufacturing/assembling ecosystems, wouldn't be surprised if they take absolute control of our EV passenger car segment within the next 5-7 years. Babu thinks 8k cars per annum is a small number. With import duty reduced to 15%, a lot of cars will end up cheaper than Tata Nexon and price conscious Indian buyer will make a beeline for those brands like they did for MG & KIA.
That 8k CKD is for vehicles priced at 35k USD or higher which is over 30lac+ on road price, Chinese companies with state support will own that category knowing how price conscious the Indian consumer is. For babus and politicians the job creation statistic which has a more immediate pay off will mean they turn a blind eye to the more serious damage that certain schemes might do in the long run.
How will it undercut Tata and Mahindra. This CBU tax benefit only applies to cars above $35k. Even then VW/Audi, BMW, Mercedes say that they not going to be taking this route meaning they are not willing to risk investing the mandatory $500 million by 3 years time and parts localization later on.
Leave it; folks here don't understand how insanely difficult it is to make accurate statistically sound predictions in a nation as large and as diverse as India - there is simply no precedent anywhere else on the planet (barring a pseudo commie dictatorship).
What would benefit us greatly is to have the future Indian methodologies be open source and easy to explain to the (educated) layman. Then the GOI should come out with informatics explaining how theses indices are more accurate than the western ones. The ball will be on the foreign indices court to explain why they think their indices are more accurate if this happens. And of course they won't have a response.
Jindals have larger ambitions beyond a token JV with SAIC (if you know, you know) and BYD was promptly shown the door. Vinfast is not market-proven anywhere; Hero Electric, Okinawa etc were mercilessly screwed (for importing cheeni stuffs) while homegrown Ather thrived. You still have startups like Ultraviolette innovating in house; what's even the big deal? As far as the inputs are concerned, they will gradually localize just like they are doing across electronics. The only segment where cheenis have had an unchecked run is E-buses - 'analysts' shd point that out more often; mentioning Great Wall motors, Changan is useless (they weren't even allowed to manufacture in India)...
India's push for EVs may lead to large-scale entry of Chinese firms in domestic market: GTRI
As the EVs are getting greater focus in the country, the auto component imports from China may increase further because it has a greater hold over the EV components' global supply chain.economictimes.indiatimes.com
The Indian government's push to boost domestic manufacturing of electric vehicles (EVs) may lead to large-scale entry of Chinese auto firms in the local market, a report by think tank GTRI said on Sunday. China's automotive industry, buoyed by substantial state support, has grown rapidly in electric vehicle technology, making it a leading exporter of EVs and related components, the Global Trade Research Initiative (GTRI) said.
India's auto component imports were USD 20.3 billion in 2022-23 of which 30 per cent came from China.
As the EVs are getting greater focus in the country, the auto component imports from China may increase further because it has a greater hold over the EV components' global supply chain.
According to estimates, China has 75 per cent of the world's battery production capacity and battery accounts for 40 per cent of the cost of an EV. It also accounts for more than 50 per cent of global EV production and exports.
The report said that in the "next few years, every third electric vehicle and many passenger and commercial vehicles on India roads could be those made by Chinese firms in India alone or through Joint Venture with Indian firms".
GTRI founder Ajay Srivastava said that Indian market entry provides a much-needed relief to Chinese firms.
"China's EV exports to the European Union and the United States are declining due to anti-subsidy probes and increased trade restrictions over the export of subsidised cars/EV batteries," he said.
JSW MG Motor India, a joint venture between China's SAIC and Indian conglomerate JSW Group, has recently announced an investment of Rs 5,000 crore to enhance production capacity and launch one new car every 3-6 months starting September.
Last year in November, China's largest automaker SAIC Motor inked a joint venture (JV) agreement with the JSW Group to accelerate the transformation and growth of MG Motor in India.
The JV aims to sell one million units of passenger electric vehicles in India by 2030 when the total market is expected to be 10 million units annually. MG Motor is a British brand owned by Shanghai-headquartered SAIC Motor.
GTRI said that SAIC Motors is not alone, as other Chinese car companies like BYD Auto have made their mark in India by offering electric vehicles, including buses, trucks, cars, and SUVs.
"Other Chinese companies, including Changan Automobile, Jinko Solar, and several bus and truck manufacturers like Zhongtong Bus and Foton Motor, also contribute to China's automotive presence in India," Srivastava said, adding that Great Wall Motors and Haima Automobile are also looking to enter the Indian market, indicating an increasing Chinese influence in India's automotive sector.
He said that China's automotive industry, buoyed by substantial state support, has rapidly advanced in electric vehicle technology, making it a leading exporter of EVs and related components.
As per the report, the automobile industry in India contributes 7.1 per cent to the country's GDP, up from 2.8 per cent in 1992-93. It provides direct and indirect employment to over 19 million individuals.
"The large-scale entry and market dominance of Chinese automakers in India will impact the domestic auto/EV manufacturers, firms working in EV value chain space, and battery development," the report said, adding currently, nearly a quarter of India's auto component imports come from China.
The dependence on China will increase sharply as more Chinese firms making cars in India will import most parts and components from China, it noted.
"China has firm plans to increase its presence in India in the passenger vehicle and commercial vehicle segments, after flooding the market with e-rickshaws and two-wheelers," it added.
The report suggested that the government and industry stakeholders will need to carefully manage the risks of over-reliance on foreign manufacturers and potential trade imbalances.
"India's decision to allow Chinese car makers in India and cutting import tariffs on electric vehicles (EVs) will benefit Chinese manufacturers directly or indirectly being the dominant suppliers of EV batteries. Supply chain dependence on China will sharply increase even when non-Chinese companies (Tesla, Vinfast) set shop in India," Srivastava said.
India has recently announced an EV policy. It has announced to cut down import duty on electric vehicles (four-wheelers) from 70-100 per cent to 15 per cent if a foreign company would invest a minimum of USD 500 million in the country in the sector.
No it isn't difficult because of those reasons but its difficult because we have poor record keeping due to lack of ethics, carelessness and process gaps. More digitized, you may see some improvements but lot of things need to be mandated by law to report numbers back to government orgs like private schools that are opened up in apartments and so on.
i already written somewhere that we need our govt handles out of twitter this shit guy just bought it to arm twist governments for making umerika great
We can argue all day over trivial details. My point is pretty simple.....
Vietnam is certainly doing better and India too in its own ways.....Vietnam can never match India's scale or complexity unless India becomes Pakistan or chaddidesh collectively. It has limits just like Japan or Korea....India can send rockets up, build reactors and so on at 3k nominal gdp.....not an easy thing for Vietnam even at 12k level. Switzerland can never be US no matter how smart swiss are....just does not work that way in general.
Maybe some policies are not changing as per his wishes.
China's days are over. Now China can not regain its speed. Inspite of lots of manipulations, they are able to show a Mediocre growth of around 5%. We are substituting them in Many sectors. Look at Mobile production and export 9 years ago. Mobile production has rose from some 19000 crore to 4.1 lakh crore and export rose to about 1.2 lakh crore from humble 1500 crore. Who would have imagined this a decade ago? 20 time rise in 10 years. This is a 35% Growth on YOY basis and Export rose 55% on YOY basis. Same story is going to be replicated in many sectors like Automobile, Railway, Software export, consumer goods and food products. We need a political stability for one more decade. That's it and India will be a different country within a decade. Electronic component shall lead the growth in next decade. This is a vital component whose contribution is lacking in GDP. We are all set to address that.
This is a bad news. Textile is a sector which generates second most employment after agriculture sector.
It is all about battery prices which is going to fall atleast 40%. This should drive a cost reduction of atleast 20% in car price. recently, Tata offers 2 lakh discount on Nexon top model. We need a car which drives 350 km in one recharge which should cost less than 13 lakh. EVs are still 35 % Costlier than its petrol counterpart. We need a 500 KM ideal range and 13 Lakh price for Mahindra XUV 400 or Nexon EV mid variant.
Expanding too fast is never a good idea in a sector as basic need as transportation that too private. I prefer a gradual growth as trends become clear in various dimensions related to ev space.....recently hertz rental backed off EV route after turning out its not cheap to operate and sustain. No need to go crazy at this point, let it go at normal pace.
