{"id":123727,"date":"2021-08-05T19:01:47","date_gmt":"2021-08-05T13:31:47","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=123727"},"modified":"2021-08-11T15:45:28","modified_gmt":"2021-08-11T10:15:28","slug":"tesla-is-unlikely-to-launch-its-vehicles-in-india-anytime-soon","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/tesla-is-unlikely-to-launch-its-vehicles-in-india-anytime-soon\/","title":{"rendered":"Tesla is unlikely to launch its vehicles in India anytime soon"},"content":{"rendered":"

Source:<\/span><\/b>\u00a0<\/span>Live Mint<\/span><\/a>\u00a0<\/span>\u00a0<\/span><\/p>\n

Relevance:<\/span><\/b>\u00a0\u00a0Electric vehicles are necessary for pollution control and import substitution.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

Synopsis<\/span><\/b>: India needs to ease its restrictive policies towards the import of electric vehicles. <\/span>\u00a0<\/span><\/p>\n

Introduction<\/span><\/b>\u00a0<\/span><\/h5>\n

Last month, Elon Musk complain about India\u2019s restrictive policies for the import of electric vehicles. India\u2019s restrictive policies are aimed at the Make in India campaign for developing domestic industrial manufacturing. <\/span><\/p>\n

Due to this policy,\u00a0importing\u00a0a\u00a0kit of unassembled\u00a0auto\u00a0parts containing an engine and gearbox (15% duty) is much\u00a0cheaper\u00a0compared to\u00a0importing a fully built car (100% duty).\u00a0<\/span>\u00a0<\/span><\/p>\n

What are the issues attached to this policy?<\/span><\/b>\u00a0<\/span><\/h5>\n

Capacity crunch<\/span><\/b>:\u00a0Importing unassembled parts of e-vehicles is not sufficient,\u00a0precision and quality of manufacturing these vehicles, like Tesla,\u00a0is very important.\u00a0India hasn\u2019t yet built up the necessary capacity to pull off large-scale output.<\/span>\u00a0<\/span><\/p>\n

Hurdles for foreign companies<\/span><\/b>: On the other hand, foreign companies are also not interested in setting up manufacturing units in India, due to local content requirements. <\/span>\u00a0<\/span><\/p>\n

Misplaced efforts:<\/span><\/b> The government has targeted 30% EV penetration by 2030, up from under 10% currently. Furthermore, it is making efforts to develop charging infrastructure in the country. However, very little efforts are made to encourage the manufacturing of EVs in India.\u00a0<\/span>\u00a0<\/span><\/p>\n

Suggestions<\/span><\/b>\u00a0<\/span><\/h5>\n

Reducing\u00a0tariff\u00a0on cheaper vehicles<\/span><\/b>: Average household incomes are low in India; the overall market is dominated by more affordable scooters and motorbikes. Thus, India should allow cheaper electric two-wheelers from China, at a lower tariff.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

Lessons from China<\/span><\/b>: Chinese also failed to create a high-quality, domestic auto industry, due to their unfocused subsidies and plans. However, with regard to EVs, they have evolved their policies.\u00a0<\/span>\u00a0<\/span><\/p>\n

China kept its import tax rates for EVs relatively low at 25%. When China became a big source of sales revenue for Tesla, it set up a manufacturing plant there. At present, Tesla is exporting cars from its Shanghai factory to Europe.\u00a0 <\/span>\u00a0<\/span><\/p>\n

India must also come up with a new policy, suitable for present conditions. If big foreign companies like Tesla can help India in developing its EV manufacturing, then India should accept it with\u00a0favorable\u00a0policies.\u00a0<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Source:\u00a0Live Mint\u00a0\u00a0 Relevance:\u00a0\u00a0Electric vehicles are necessary for pollution control and import substitution.\u00a0\u00a0\u00a0 Synopsis: India needs to ease its restrictive policies towards the import of electric vehicles. \u00a0 Introduction\u00a0 Last month, Elon Musk complain about India\u2019s restrictive policies for the import of electric vehicles. India\u2019s restrictive policies are aimed at the Make in India campaign for… Continue reading Tesla is unlikely to launch its vehicles in India anytime soon<\/span><\/a><\/p>\n","protected":false},"author":10308,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[8906,244,768,8659,216],"class_list":["post-123727","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-electric-vehicle","tag-electric-vehicles","tag-energy","tag-environmental-pollution","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704782530},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/123727","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10308"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=123727"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/123727\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=123727"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=123727"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=123727"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}