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
===================================================
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 ?
-----------------------------------------------------------------------------------------
[ 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
:
------------------------------------------------------------------------------------------
[ 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 { read note below } ?
--------------------------------------------------------------------------------------------
[ 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 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 / -
# 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 :
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.
===================================================
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 :
===================================================
Aug
4, 2020 / 250,200 views
Cheapest Chinese Electric Car selling for $ 10,000 ( Rs 7 Lakh )
===================================================
==================================================
March 28th, 2020 by / Zachary Shahan
===================================================
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
===================================================
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
===================================================
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.
===================================================
With regards,
Hemen Parekh / hcp@recruitGuru.com / 07 Oct 2020
