Monday, 16 November 2020

Musk may not care

 


 

But Indian industrialists ( Mukesh – Mittal – Munjal – Maini ) are certainly worried about their factory workers to :

Ø  Produce a Domicile Certificate before getting a job

Ø  May be even having to produce a “ WORK PERMIT “ ( ala H1-B Visa ? ) from the States concerned

     

Context :

How other States may replicate Haryana’s New bill reserving 75 % jobs for locals in private sector

Extract :

Ø  Haryana

#  Every employer to employ 75 % local candidates in posts where wages

     are not over Rs 50,000 / month

         #  Employers can claim exemption if sufficient local candidates with skills

             are not available

Ø  Andhra Pradesh

#  Industries, factories, PPP projects to ensure 75 % employment to local

     candidates

#  If qualified lcal candidates are not available, industry must train locals in 

     3 years

Ø  Karnataka

#  In September, government said it will issue directive to recruit locals in

     Group C & D ( clerical ) jobs in PSUs; says “natives “must be given

     priority in private sector too

Ø  Uttarakhand

#  CM directs industry department to formulate a proposal to ensure that 70

     % of jobs in state’s industries will go to local

 

Karnataka keeps law on job quota for locals at bay

Extract :

Ø  Although the Constitutional validity of such laws remain challenged in court, Haryana's move has revived the debate in Karnataka where this has been tried before

 

Ø  "Under such a law, special permission should be sought from the government if a company has less than 75% local employees. This leads to a lot of logistical complications, as it is not necessary that all expertise required to run a firm or a factory is available locally “

 

Ø  "Though reasonable restrictions to provide up to 50% reservation is fine, a higher limit is against the well-being of a company, which should be empowered to make its own appointments,"

 

Ø  Deputy Chief Minister C N Ashwath Narayan, who heads the IT/BT department, concurred and said companies would prefer states with fewer regulations of this kind. He even called it 'retrograde'. 

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

WHY WOULD ELON MUSK NOT CARE ?

 

( A )   He has his plate full

Ø  He has no compulsion to put up his 5th Gigafactory in India .

 

Ø  After his first factory in Freemont ( USA ) , he broke ground for his 2nd factory in Shanghai ( China ) in 2018 and started assembly within ONE YEAR ! This factory is expected to deliver 250,000 cars in 2020 !

 

Ø  His 3rd factory in Berlin is under construction and expected to start production by end 2021

 

Ø  His 4th factory in Austin ( USA ) is also under construction and will start production by 2022

 

 

( B )   He has other options for his next factory 

Ø  He has no compulsion to put up his 5th Gigafactory in India. For his 5th factory , he is looking at Singapore / Vietnam / Indonesia

 

( C )  As compared with any auto factory of the world, Tesla needs far fewer Man-hours / unit, to produce a car

Ø  All of his factories are highly automated with specialized ROBOTS and require very few human workers

  

( D )  Following Wright’s Law , Tesla’s labour requirement is dropping by 15-20 %

         with each doubling of cumulative units produced

         

  Refer :

Y=axb

Wright’s Law Formula

Y = cumulative average time (or cost) per unit
X = cumulative number of units produced
a = time (or cost) required to produce 1st unit
b = slope of the function

https://www.youtube.com/watch?v=7lKRL7Hghfk

Now , consider the following :

Ø  By March 2020 , Tesla rolled out its first MILLIONTH ( cumulative ) car

 

Ø  By Dec 2020 , Tesla would have capacity to produce 650,000 cars / year ( between California and China factories )

 

Ø  Hence , by middle of 2022 , it would have produced ( cumulative ), 2 MILLION cars and dropped its “ labour requirement “ by another 20 % from current level

 

Ø  With coming on stream of Berlin and Austin factories ( by Dec 2021 ? ) , Tesla could conceivably achieve a cumulative production of 4 million car by Dec 2024 – once again dropping its “ labour requirement “ by yet another 20 % !

 

 

If Tesla puts up a plant in India in 2024 , chances are , it may not need more than a few hundred highly qualified engineers ( all drawing a salary of Rs 1 lakh / month ? ) for maintenance of its highly automated robotic plant !

If Tesla could already offer FSD ( Full Self Driving ) cars ( without a human driver ) – and that too on complicated roads / turns / traffic signals / unpredictable drivers of other cars etc., then there is good reason to believe that it could easily operate its future streamlined manufacturing / assembly lines, with hardly a human around !

By that time, the way our States are getting busy with their hollow / populist “ carrots “, it is conceivable that I may need to obtain a TOURIST VISA to travel from Mumbai to Mangalore !

We have earlier heard :  Man proposes , God disposes

Now I am hearing : 

Centre proposes ( to multinationals to shift their manufacturing plants from China to India ) , States are disposing !

Is there any State Chief Minister, courageous enough to say :

“ Hey, Elon :

Put up your plant in my state, as long as all of your employees are INDIANS “

 

With regards,

Hemen parekh  /  hcp@RecruitGuru.com /  17 Nov 2020

 

 

Related Readings :

https://en.wikipedia.org/wiki/Tesla_Model_3

https://futurism.com/the-byte/tesla-cancels-35000-model-3-car?mc_eid=a96c428172&mc_cid=4cffed8629

https://futurism.com/graphene-batteries-gamechanger

Luck does not happen !...........................[ 04 Nov 2020 ]

 

No comments:

Post a Comment