Tesla set up EV plant in China for following three
reasons:
Ø Chinese
Govt rolled out a RED
CARPET with a slew of incentives
Ø China
is by far, the biggest EV market in the world
Ø For
over a decade now, China boasts of a large number of EV component suppliers
Ø
Question :
Ø What
kind of a GREEN
CARPET can India roll out for Tesla ?
Answer :
The following news report which appeared in news-papers
recently, does not provide a clear answer. But may be at this stage, Shri Nitin
Gadkariji does not want to go public with the details :
India
woos Tesla with cheaper
production costs than China / First Post
/ 03 March 2021
Extract :
India is ready to offer incentives to
ensure Tesla Inc's cost of production would be less than in China if the
carmaker commits to making its electric vehicles in the south Asian country,
transport minister Nitin Gadkari told Reuters.
"Rather than assembling (the cars)
in India they should make the entire product in the country by hiring
local vendors. Then
we can give higher
concessions," Gadkari said in an interview,
without giving details of what incentives would be on offer.
"The
government will make sure the production cost for Tesla will be the lowest when compared with the world, even China,
when they start manufacturing their cars in India. We will assure that," he said.
But India faces a big challenge to win
a production commitment from Tesla, which did not immediately respond to an
email requesting comment about its plans in the country.
India's fledgling EV market accounted
for just 5,000 out of a total 2.4 million cars sold in the
country last year as negligible charging infrastructure and the high cost of EVs deterred buyers.
In contrast, China, where Tesla already
makes cars, sold 1.25 million new energy passenger vehicles, including EVs, in
2020 out of total sales of 20 million, and accounted for more than a third of
Tesla's global sales.
India also doesn't have a comprehensive EV policy like
China, the world's biggest auto market, which mandates companies to
invest in the sector.
Gadkari said that as well as being a
big market, India could be an export hub, especially with about 80% of components for lithium-ion
batteries being made locally now.
"I think it's a win-win situation for
Tesla," Gadkari said, adding he also wanted to engage with Tesla about
building an ultra high-speed hyperloop between Delhi and Mumbai.
India is drawing up a production-linked
incentive scheme for auto and auto component makers as well as for setting up
advanced battery manufacturing units, but the details are yet to be finalized.
===================================================
Dear Shri
Gadkariji,
Any special concessions / incentives that you may be considering to offer to Tesla, will get,
Ø demanded
by other foreign EV manufacturers also, who want to set up shop in India
Ø decried
by domestic ( purely Indian ) EV manufacturers as “ killing domestic industry “
Ø deplored
by Opposition Parties as example of “ Crony Capitalism “
I am sure, given the challenge of meeting “ 30 % EV
on the roads “ target by 2030 , you will not deviate from your following
promise ,
" The government will make sure the production cost for Tesla will be the lowest when compared with the
world, even China,
when they start manufacturing their cars in India. We will assure that “
To enable such a LOW COST PRODUCTION SYSTEM , I
urge you to consider suggestions made in my following earlier e-mail :
Ø Fastest
Finger First ? ………………………………[ 07 Oct 2020 ]
Extract :
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 ?
-----------------------------------------------------------------------------------------
[ 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 ]
------------------------------------------------------------------------------------------
[ 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.
---------------------------------------------------------------------------------------
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 ?
--------------------------------------------------------------------------------------------
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 )
-----------------------------------------------------------------------------------------
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 !
-----------------------------------------------------------------------------------------
[ 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 4,55,000 / -
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
If this happens, no one would want to buy a
Petrol-Diesel Car any more !
Related Readings :
Chinese Electric Cars Will Take Over The World – If We
Let Them
James Morrisjames@whichev.netjmorris@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.
A
Brief History of Electric Vehicles in India ………..[ 30 Jan 2021 ]
===================================================
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