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, 3 March 2021

Elon Musk : We offer a GREEN CARPET

 


 

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.

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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.

---------------------------------------------------------------------------------------

[ 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 ?

--------------------------------------------------------------------------------------------

[ 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 )

-----------------------------------------------------------------------------------------

 [ 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 !

-----------------------------------------------------------------------------------------

[ 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

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 !

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

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.

 

A Brief History of Electric Vehicles in India ………..[ 30 Jan 2021 ]

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

With regards,

Hemen Parekh  /  hcp@RecruitGuru.com  /  04 March 2021

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