Tesla's successful opening of a gigafactory in China has attracted the attention of India**.
According to the Financial Times, Indian Prime Minister Narendra Modi has decided to reduce tariffs on imported electric vehicles to attract companies such as Tesla to build factories in India. Tesla has been concerned about India's high tariffs, which are 70% tariffs on imported vehicles priced below $40,000 and 100% above $40,000.
Such high tariffs make it difficult for companies such as Tesla to enter the Indian market, and the consumption level is also low, limiting the size of the market.
In order to solve this problem, India** requires Tesla to solve the problem of localized production first, and then give tax breaks.
However, Tesla still has concerns about localized production, so the two sides have not reached a consensus. But recently, India** revealed that Modi is considering a request to reduce tariffs on imported electric vehicles with a "huge" adjustment.
Modi is expected to reduce the import tariff on electric vehicles to 15%. Modi's move is believed to be an attempt to attract more foreign companies to invest in India by lowering tariffs and creating conditions conducive to India's overall development.
However, it can be seen that Modi is eager to compete with China, even willing to sacrifice the interests of his own country's development industry. Recent negotiations between India** and semiconductor companies such as Intel and Gome show that India is trying to emulate China's rising experience in many ways.
Many in the automotive industry are concerned that excessively low tariffs will lead to the occupation of the country's electric vehicle market by foreign companies, affecting the interests of the domestic development industry. However, Tesla's entry into the Indian market, as the world's leading electric vehicle manufacturer, will bring technological innovation and employment opportunities, and will also have a positive effect on the development of the Indian economy.
Tesla is likely to negotiate with India** on the sidelines of the Asia-Pacific Economic Cooperation (APEC) leaders' meeting. However, Tesla is also concerned about the issue of India's business credit, which could be removed from the tariff exemption for an uncertain time in the future.
India** is ready to welcome Tesla's factory construction in the form of "jump price" tariff discounts, but at the same time, it will also face the test of open markets and commercial credit problems. In short, India** is ready to welcome Tesla's factory construction in the form of "jump price" tariff discounts, but at the same time, it is also facing the test of open markets and commercial credit problems.
The move is a sign of Modi's eagerness to compete with China, but whether it will hurt India's own development sector remains debatable. It has been learned that India** hopes to attract investment from Tesla and other companies by reducing tariffs on imported electric vehicles.
Tesla, on the other hand, is concerned about India's commercial credit problems and has demanded lower tariffs as a prerequisite for building a factory. Indian Prime Minister Narendra Modi plans to reduce import tariffs on electric vehicles to create favorable conditions for India's overall development.
However, many in the auto industry are concerned that the reduction of tariffs will lead to the domination of the domestic EV market by foreign companies. Against this backdrop, Tesla may negotiate with India** during the APEC meeting, but the tariff exclusion may not remain in place for long.
To summarize the full text of the information, in order to attract investment from Tesla and other companies, India** is ready to significantly reduce tariffs, but at the same time, it may face the risk of opening up the market and business credit problems. Tesla may negotiate with India** during the APEC meeting, but the tariff exclusions may not remain in place for long.