introduction
As the world's second most populous country, India' economic level is relatively backward and the number of poor people is relatively large, but it has 100 million high-income people, such a social structure is unimaginable.
It can be said that India's GDP is not as good as China's, but the spending power of India's rich people is amazing. Therefore, many well-known car manufacturers in the world are vying to enter the Indian market and earn the money of the rich indians. When Musk was doing the live broadcast before, he was asked when Indians will be able to use Tesla-made cars. Musk was full of energy and confidence at the time, and he said very firmly: "Just next year." Recently, many people are discussing, the Indian side shouted Musk to "build a factory", but Musk refused? Professionals make the interpretation.
The reason why Musk can be so confident is because he sees the future of new energy vehicles, but unfortunately he does not understand the complexity of India's national conditions, and it can be said that Tesla wants to enter the Indian market, which is difficult. Because the Indian side said that it does not accept Tesla from China, if it wants to enter the Indian market to earn Indian money, it must build a factory in India.
In this regard, Musk said that in order to build a factory in India, it is necessary to prove the consumption capacity of the Indian market. How to prove it? The most direct is to first import Tesla new energy vehicles from China into the Indian market, and if the sales are good, consider building a factory. The Indian side insisted on not giving in.
In fact, Musk's idea is also quite simple, he hopes that the Indian side can reduce tariffs on Tesla and let Tesla test the waters in the Indian market first. India believes that Tesla is suspected of discriminating against India, why can Tesla build a factory in China, but not in India?
Although Musk has made various efforts to enter the Indian market, even through an Indian executive with a strong family background to try to persuade Modi, but efforts for more than a year, there has been no progress.
India has implemented a policy of protecting the local auto industry, imposing the highest tariffs on imported cars in the world. Imported cars that have been subject to high tariffs are not competitive in price when they enter the Indian market. Tesla's cheapest Model3 must be sold for as much as 540,000 after entering the Indian market, otherwise it is unprofitable, and its original price only sold for 270,000.
Musk tried to talk to Modi directly, but Modi did not respond, but only asked the transport minister to insist that "the factory must be built first." It can be said that Modi wants to learn from China, but he has not learned enough. He just wishfully asked Tesla to build a factory in India, what he did not expect was that Tesla settled in China because it had been negotiating with China for 4 years, and then China let teslas made in the United States enter the Chinese market for sale, and in order to let Tesla settle in China, it also provided Tesla with tens of billions of low-interest loans, with extremely low land transfer fees for support.
After seeing a good market response, Musk, who tasted the sweetness, agreed to build a factory in Shanghai in 2018. In fact, Musk's worries are not superfluous, in 2020, the Chinese market sold 1.25 million new energy vehicles, while India's various brands of electric vehicles only sold 5,000 last year.
Tesla once promised to use the domestic industrial chain completely at the beginning of the factory, and Tesla Shanghai public relations Tao Lin recently claimed that "so far Tesla has basically achieved complete localization." ”
According to relevant data, 70% of the industrial chain of new energy vehicles in the world is in China. If India wants to build factories in the country, it must import parts from China, in other words, India is only an assembly base. However, the Indian side ignores the objective factors in this regard and only wants to compete with China. Therefore, the Indian parliament passed a resolution to approve a support fund for the new energy vehicle industry equivalent to 20 billion yuan, which is equivalent to beckoning to the world's new energy automobile industry giants, as long as there is financial support to build a factory.
Musk calculated that the Shanghai Tesla factory needs to invest about 14 billion yuan, and India's support funds are 20 billion yuan, it is obvious that the 20 billion cannot be used by Tesla, then this behavior of the Indian side is a bit fishing, because if the capital for building the factory is insufficient, it needs to subsidize itself.
As we all know, in order to be able to overtake in curves, China laid out the new energy industry in 2010. To this day, it has been more than 10 years of hard work. And Modi also hopes to get a piece of the pie at the time of this megatrend. Unfortunately, India was not prepared for this before, but when the trend came, it remembered to take the last train of new energy, smart phones they have fallen behind, they do not want to fall behind again in new energy vehicles.
The last thing to see Tesla's new energy vehicles appear in the Indian market is the Indian local auto company giant Tata, Tata Motors claims that "there are 10 cars on the streets of India, of which 7 are produced by Tata Motors". This is not to say how patriotic indians are and how well Tata cars are built, but that India has imposed high tariffs on imported cars, making the price of imported cars too high for only a small number of rich people to afford.
Tata Motors also used its local influence to lobby Modi, hoping to ban Tesla from entering India, saying that "if Tesla is allowed to enter India, it will be contrary to the policy of supporting local car companies." At the same time, it also raised funds from many parties to transform new energy, hoping to let Modi see their determination and ability. Tata Motors has also converted one of their best-selling models into a new energy vehicle, claiming a range of 312 kilometers. At the same time, it also said that "in 2030, the new energy vehicles produced by Tata Motors will account for 30% of India's new energy vehicle sales".
epilogue
Indian consumers do not recognize the efforts made by Modi and car companies, and they have left messages: "If you want to develop new energy vehicles, let Tesla settle in India, first clean up the messy wires that spread around the street, otherwise we can't charge new energy vehicles." Some people also said: "Tata Motors Group's new energy vehicles the most critical car battery is still made in China, when can it be localized."
Today's topic: India refuses to import Chinese-made Tesla cars, Musk: I can't build cars in India