Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Wednesday, 7 October 2020

Fastest Finger First ?

 


 

That is what Elon Musk seems to be saying to all the Indian States vying with one another to occupy the ( negotiating ) “ hot seat “ opposite Elon, in this game called :

Kaun Banega  Car-pati ?

 In my following blog, ( emailed to Ambani , Rupani and Adani ), I dropped hints on how they can occupy the hot seat :

“ Ambani, Rupani , Adani & Musk Ltd

But, it seems, Gaurav Gupta ( Principal secretary , Commerce and Industries Department, Karnataka Government / Phone: 080 22034340  / info@ksiidc.com  ), proved to be faster on the draw

Context :

Bangaluru keen to roll out Red Carpet for Tesla safari    /  ET – 05 Oct

Extract :

Ø  Karnataka has pitched Bengaluru to Tesla, the world’s most valuable carmaker, as a potential location for a Gigafactory where it can manufacture electric cars and batteries, a state government official told ET.

 

Ø  “We have offered them (Tesla) all support to set up a research and development centre  as well as the manufacturing unit,” Gaurav Gupta, principal secretary of Karnataka’s commerce and industries department, told ET. “Bengaluru has a favourable ecosystem for electric vehicles and Tesla can leverage on that.”

The talks were preliminary and “it is going to be a long-drawn process.
We are at it and we will keep the sustained dialogue going,” Gupta said. “We have briefed them about how Bengaluru is home to promising EV startups and also component makers and the advantages we offer.”

 

Ø  Karnataka was the first state to draw up an electric vehicle policy in 2017, hoping to generate investments of Rs 31,000 crore in manufacturing and research and development. Since then, 11 states, including Gujarat, Delhi and Maharashtra, have drafted EV policies

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But as far as Elon Musk is concerned , “ whole world is a stage “

Last year, he set up a TESLA factory in China, with China providing TESLA, a loan of $ 2.25 Billion ( = Rs 16,467 crore )

It is reported that Elon is also evaluating offer from Thailand

But then, no deal is done till it is done ! 

Could Shri Vijaybhai Rupani ( CM-Guarat ) have a “ Second Mover Advantage “ ( once Karnataka has revealed all its cards ) ?

Could he offer to Elon, an INTEGRATED SOLUTION as follows ?

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[ A ]…. Lower Cost of Steel

Steel sheets constitute a major cost of a car. Gujarat can invite Anand Mahindra to set up a,

 “ Vehicle Scrapping Plant “

Such a plant could melt the recycled steel scrap ( 70 % of a car ) and reroll steel sheets and supply to TESLA plant at 30 % cheaper than virgin steel sheets from iron-ore based steel plants

Refer :

Car Grave-Yard of World ? ……………………………………………[ 14 Feb 2018 ]

Mahindra Accelo : Saluting a pioneer    …………………… [ 19 June 2018 )

Scrapping Old Vehicles : Swiss Challenge Solution …[ 24 July 2018 ]


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[ B ]…. Lower cost of Electric Power

 

Get Solar Power at Rs 2.5 / Kwh from Adani Green Energy’s 10,000 MW solar project being set up in Rajasthan

The goal of 10,000 Mw generation will be achieved in phases – in phase-I, 1700 Mw hybrid power plant (solar and wind) in Jaisalmer will be established by 2021 after which 2,000 Mw plants every year in next four-five years at Jaisalmer, Jalore and Bikaner.


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[ C  ]  …. Lower the cost of Finance

If China can give to TESLA, a cheap loan of Rs 16,467 crore, how about subsidizing TESLA India plant with those Rs 900 Crore that NITI Aayog has recommended in its proposal { read note below } ?


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[ D ] …. Lower the cost of Supply Chain of components

Next to the plot of 10,000 acres for TESLA Tera-Factory at Mundra , allot another 500 acres for EV component manufacturers . Entice M&M ( or TATA Auto-Comp ) to set up a PRESS SHOP, to fabricate EV Body / Chassis , fed on a conveyor belt to TESLA factory ( Elon Musk’s BORING COMPANY would happily construct an UNDERGROUND TUNNEL , as done in LA / Las Vegas )


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[ F ]  …. Lower the cost of Sea-Freight ( for Imports-Exports )


In [ A ] , I have suggested setting up a Vehicle Scrapping Plant .

From EU ( which has problem of scrapping of millions of Petrol-Diesel cars - to replace with EVs ), let specially configured ships bring 10,000 cars ( per each inward trip ) and unload at Adani Port’s Jetty # 2 ( for conveyorized delivery to Mahindra Accelo plant for scrapping ). Unloading within 20 hours ( 500 cars per hour )

After un-loading , same ship will carry 10,000 EVs ( for export to EU ), on it’s return journey to Barcelona  

Export of 3 million EVs in 300 working days , earning enough foreign exchange for setting up many more Tera-factories ( - of course , this export could start in 2022 at the earliest – and , may be only 10,000 EVs and gradually rise to 3 million / year by 2030 )

Guaranteeing full loads with minimum turn-around time, to 300 ships, will bring down round trip freight cost between Barcelona and Mundra, from $ 1600 per container, to ( may be ) $ 800 per container !


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[ G ] ….. Lower On-road Sale Price through various incentives


#  Production Linked Incentive ( PLI )

For Electronic Companies (including Mobile manufacturers ), Govt has planned to give an incentive of 4 % - 6 % of sale price

Let Govt give a similar incentive @ 5 % of Sale Price to TESLA

Assuming India–made TESLA’s base price ( before incentives ) = Rs 10 lakh

Therefore 5 % PLI = Rs 50,000

 

#  Incentive linked to GST on imported Li-Ion Batteries

Assume :

TESLA imports a 65 Kwh battery at $ 100 / Kwh = $ 6500 = Rs 455,000 / -

GST at 15 % =  Rs 68,250 / - ( currently charged )

GST at 5 %   =  Rs 22,750 / -  ( proposed for TESLA plant )

Therefore , saving = Rs 45,500 / -

(  View : How Tesla's New Battery Will Destroy Gas Cars  ) 

 

#  Incentive linked to GST on Sale of EV in India

Current GST ( @ 5 % ) = Rs 10 Lakh x 5 % = Rs 50,000 / -

 Proposed GST for India-made TESLA cars = 0 %

Therefore, saving = Rs 50,000 / -

 

Added up, these 3 incentives  =  Approx  Rs 1.5 Lakhs

 

That would reduce the on-road Sale Price from Rs 10 Lakh to Rs 8.5 Lakh ( below the sale price of equivalent Petrol – Diesel cars )

If this happens, no one would want to buy a Petrol-Diesel Car any more !

 

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Related Readings :

Chinese Electric Cars Will Take Over The World – If We Let Them

James Morris /  https://www.whichev.net/  / james@whichev.net / jmorris@forbes.com

Extract :

There are even cheaper cars that could really disrupt the Western markets, though. Great Wall’s Ora R1 costs around $ 8,600, yet still comes with a 33kWh battery offering up to 194 miles of range. The Dacia Spring might look like a potential European competitor to the Ora R1, but that’s based on a Chinese-made car too. Even Tesla is considering building a small Chinese-made car.

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Dream or nightmare? Why India should postpone its electric vehicle plans for ten years

June 13, 2019 Ajay Srivastava

Extract :

Ø  Most firms take the import route. For example, India imports 90% of electric scooter components from China. Currently, an Indian car uses 10-15% imported parts. EVs will increase import dependence to 70% or more.

Ø  India should use this time to take care of two pressing issues.

 

Ø  For this reason, when fully adopted EVs will kill most auto component firms. Survivors will have to move to an industry 4.0 format. India would also need to reskill a large number of motor mechanics. They cannot repair EVs because of the sophisticated electronics. End of ubiquitous roadside motor garages.

 

Ø  Second, and, more important, India should use the next ten years window to become a leader in next-generation battery technology. This is an honourable way to pursue EV dreams without being critically dependent on any country. This will require setting up of a high-ambition, well-funded institution headed by a recognised expert. That would be a project worthy of investing our national pride in.

Read my blogs :

Congratulations , Shri GopuKumarji …………………………………………..[ 30 Jan 2019 ]

Ray , a drop of golden Sun ………………………………………………………….[ 18 Feb 2019 ]

Congratulations , Shri V K Saraswat …………………………………………..[ 27 Mar 2019 ]

Ashok Leyland-Hindustan Zinc-IIT M , for Zinc-Air Battery         [ 18 Sept 2020 ]

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Cheap, Cool & Crazy Electric Cars at CHENGDU MOTOR SHOW | FULLY CHARGED for Clean Energy & EVs

Aug 4, 2020 / 250,200 views

Cheapest Chinese Electric Car selling for $ 10,000 ( Rs 7 Lakh )

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Welcome to the EV Savings Calculator

 ==================================================

Check Out This Electric Vehicle Total Cost Of Ownership Calculator

March 28th, 2020 by   /   Zachary Shahan 

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Government plans $4.6 billion in incentives for battery makers in electric vehicle push: Report  /  26 Sept 2020


Extract :

The think tank recommended incentives of $4.6 billion by 2030 for companies manufacturing advanced batteries , staring with cash and infrastructure incentives of Rs 900 crore ( $ 122 million ) in the next financial year which will be ratcheted up annually

"Currently, the battery energy storage industry is at a very nascent stage in India with investors being a little apprehensive to invest in a sunrise industry

India plans to retain its import tax rate of 5 % for certain types of batteries, including batteries for electric vehicles, until 2022, but will increase to 15 % thereafter to promote local manufacturing

The draft proposal said, annual domestic demand for Battery Storage and market size – currently less than 50 Gigawatt hours and worth just over $ 2 billion - could grow to 230 Gigawatt hours and more than $ 14 billion in ten years’ time

The proposal estimates it would cost firms some $6 billion over 5 years to set up manufacturing facilities with the support of government subsidies

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PLI scheme approval a challenge for local manufacturers to scale up: Industry  /  06 Oct 2020

Extract :

Ø  The government, on Tuesday, approved applications of 16 electronics companies including 10 mobile phone manufacturers for reward under the product-linked incentive (PLI) scheme for total disbursement of Rs 40,000 crore, expected to attract investment of Rs 11,000 crore in next five years.

Ø  Global mobile phone manufacturers that are approved to avail incentive for producing mobile phones with invoice value Rs 15,000 and above are Samsung, Foxconn units Hon Hai and Rising Star, Wistron and Pegatron.

Ø  The PLI Scheme offers an incentive of 4 % to 6 % on “ incremental sales “ of handsets over a base year

 

Ø  The selected manufacrurers are expected to generate output worth Rs 10.5 lakh crore , of which 60 % would be exported. Output of Rs 9 lakh crore is expected from handset makers alone
 

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Give the old vehicle a green break  /  Business Line / 07 Oct 2020 / Preeti Mehra

Extract :

 

GIZ/ Society of Indian Automobile Manufacturers’ figures for 2015 estimated that there were 87.31 lakh vehicles that scrapped.

 

The government policy is being awaited since 2016.

 

In fact, by 2025, the number of retired vehicles is estimated to touch 2.18 crore, with two-wheelers accounting for about 80 per cent of them.

 

To highlight the issues that need to drive the policy, the Centre for Science and Environment (CSE) recently came out with a report, ‘What to do with old vehicles? -- Towards effective scrappage policy and infrastructure’.

 

The CSE, in its report, flags several steps forward not only for green recovery but to nudge an EV, low-emission future in the country. Among its many recommendations is, “leveraging the scrappage stimulus to accelerate zero emission pathway for the new normal”.

 

This primarily means linking the incentives given for retiring vehicles to acquiring electric vehicles.

 

The strategy is helping Europe shift gear towards more zero emission electric fleets on its road… but its ability to attract customers would depend on whether the incentive is worthy enough.

 

For this, the awaited scrappage policy will need to be thoughtfully formulated and robust in intent to help the country meet its targets of ensuring 25 per cent of all transport is in the electrification segment by 2024.

 

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With regards,

Hemen Parekh / hcp@recruitGuru.com  / 07 Oct 2020

 

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