Tesla has a lawsuit in India that is now ongoing.
Tesla Inc., a car manufacturer owned by Elon Musk, filed a lawsuit against an Indian battery manufacturer called Tesla Battery America LLC, accusing it of trademark infringement, according to a May 3 record from India's Delhi High Court. For a time, the news of Tesla's lawsuit against "Tesla India" caused a local public opinion upsurge.
Musk's trip to India in April is not known to have anything to do with it. However, Musk's visit to India is a small matter, and the reputation of the Indian market is a big matter.
纯印度企业：“Tesla Power USA”
According to the details of the lawsuit released by the court, the battery manufacturing company, headquartered in Gurgaon, India, has long called itself "Tesla Power" and used trademarks such as "Tesla Power" and "Tesla Power USA" for promotion and sales.
Tesla said in court that it found out that the Indian company was using its own trademark in 2022 and sent a notice of suspension to the other party on April 18 of that year, but the other party is still using the trademark, so Tesla was forced to resort to court.
"Tesla India" argues that its main business is to manufacture "lead-acid batteries" and has no intention of producing electric vehicles. The court gave Tesla India three weeks to submit written defenses, and a second hearing will be held on May 22.
Reuters reported that before the case, Musk was originally scheduled to visit India on April 21 and meet with Indian Prime Minister Modi, both sides had previously made high-profile publicity about it, but before the trip, Musk postponed the visit to India on the grounds of "busy affairs", and also visited China "unexpectedly" a few days later. This has also caused the civil litigation dispute between the two companies to arouse widespread public attention.
Tesla supporters believe that "Tesla India", as an Indian company, has added the word "USA" to its trademark, and at the same time claimed in the advertisement that its headquarters is located in Delaware, the same as Tesla, which is obviously suspected of being "mixed up". Ironically, supporters of "Tesla India" have harshly criticized Tesla, saying that since Tesla has chosen to embrace China in the Sino-Indian competition, it should no longer bully an Indian battery company.
Accurate goodwill, can't get Musk's platform?
In fact, since the beginning of India's election season, the news about Tesla in India has been heavily politically charged.
India's general election began on April 19 and will be announced on June 4, lasting nearly a month and a half. Before the election, the Modi government introduced a tax cut policy specifically for electric vehicle manufacturers.
Under the new policy, companies can receive tax incentives if they commit to investing at least 41.5 billion rupees (US$500 million) to start producing electric vehicles in local factories within three years. In addition, imported electric vehicles priced above $35,000 will only have to pay a 15% tariff for five years. Before the New Deal, India imposed a high tariff of 70% on imported cars under $40,000, and as high as 100% on cars over $40,000.
In order to optimize its global industrial layout, Tesla plans to invest in an electric vehicle production plant in India with an annual output of 500,000 units and a total investment of $2 billion to $3 billion in 2023, but India's high tariffs have always been one of Tesla's main concerns.
Some Indian commentators believe that Tesla's cheapest model, the Model 3, has a starting price of about $38,000, and the Modi government's $35,000 tax cut threshold seems to be set specifically for Tesla. Announcing this policy before the election and inviting Musk to India for a meeting during the election is to hope that Musk will stand up for Modi and boost the election. India's Minister of Commerce and Industry, Goyal, denied this.
On April 20, Musk announced the postponement of his visit to India, which quickly became a hot topic in India's general election, and India's opposition parties launched a fierce public opinion offensive against the Modi government.
Chatuvedi, a lawmaker from the opposition Shiva Army Party, said that Musk's postponement of the visit is because he does not want to be coerced by Modi and stand up for the Bharatiya Janata Party. Ramesh Ramesh, secretary general of the Indian National Congress Party, posted that Musk has seen the situation very clearly, and he knows how the Indian people will vote, "when the new Indian government will be more active in promoting electric vehicles."
Shortly after announcing the postponement of his visit to India on the grounds of "heavy business", Musk visited China on April 28 without warning. During his visit to China, Musk said he was happy to see the rapid development of China's electric vehicle industry, and said: "If I have a lot of Chinese fans, then the emotions are mutual, and I am a huge fan of China." ”
This further irritates the sensitive nerves of Indian nationalism. For a time, the Indian media and social networking platforms were flooded with criticism of Musk. Of course, the ridicule of the Modi government is also endless.
India's Channel 9 News aired a clip about Musk, with the caption saying: "Hello China! Goodbye India! The subsequent on-screen subtitles read, "Very busy Tesla? A week after the cancellation of the trip to India, he will visit China". Indian political satirist Akash Banerjee questioned "why Musk didn't have time to meet Modi but had time to go to China" on Youtu, and the show received nearly 300,000 views on the same day.
To tell the truth, Modi and the Bharatiya Janata Party have obvious election advantages, and the "real and false Tesla" case and Musk's failure may have an impact on the election, but the impact should not be overestimated.
"Hindu Mythology" VS "Black Hole of Foreign Enterprises"
In addition to the complex political and public opinion environment, Tesla's investment in India is also facing huge competitive pressure from local Indian automakers.
It is understood that Indian auto giants Tata Motors and Mahindra have previously lobbied the Indian government not to reduce tariffs on foreign car companies. Tata claims that in the early stages of the industry, Indian EV manufacturers need more government support, and that lowering tariffs will hurt the entire industry, which in turn will hurt India's investment climate.
Clearly, Tata's understanding of the "investment climate" is very different from that of non-Indian companies. In recent years, India has accused foreign companies of tax evasion or obstructed foreign companies from applying for subsidies, and severely suppressed a number of well-known international companies such as Samsung, Xiaomi, and Lenovo.
What happened to these foreign companies is a long story. It is precisely under the wave of "India's Rise", "Indian Miracle" and "Demographic Dividend" that foreign companies have come to invest in India.
From 2014 to November 2021, 2,783 foreign companies registered in India, including Ford Motor of the United States, closed their operations in India, accounting for about one-sixth of multinational companies in India, according to official data released by India.
After the trademark dispute, some Western media published an article on May 7 questioning whether Tesla is abandoning India. In fact, for large multinational companies, whether to invest in an emerging market is not only based on whether it has huge growth potential, but also whether it has a fair, convenient and friendly business environment.
Bresnick, a researcher at Georgetown University in the United States, said in his analysis of the reasons for the success of Musk's trip to China that Tesla has signed a new cooperation agreement with Baidu and has passed the data security test, and the relevant results further demonstrate China's openness to foreign companies.
It is undeniable that Tesla and India still have great potential for cooperation. India's huge consumer market, growing industrial system, and the government's continuous introduction of new energy policies have always attracted companies like Tesla with global expansion ambitions.
The prospects for investing in India have always looked promising, but foreign companies have had to contend with challenges such as inadequate infrastructure, slow and cumbersome legal procedures, and inefficient personnel. One of the most critical factors is the investment environment. "Without a stable long-term regulatory policy, it will also be difficult for Tesla to leverage its expertise in EV expansion to compete effectively in this unique market of India," the US media commented. ”
Source: "Broken Circle" WeChat public account
Author: You Ming
Editor: Hu Liang
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