India recently launched a clean energy plan to deploy 10,000 electric buses to 169 cities within 10 years. However, faced with a shortage of 97 million electric vehicles, India quickly placed an order for 1,000 units with Chinese company BYD. However, India is willing to pay a 10% deposit to take all of BYD's electric buses. BYD firmly rejected the request because they could not accept India's unfair solution. As it is difficult to find a first-class business with the same cost performance as China's electric vehicles in the world, India has fallen into a dilemma of choosing a businessman. Unexpectedly, however, the United States stepped in to help India. According to reports, the United States has expressed its willingness to contribute 3US$900 million to subsidize an order for 50,000 electric buses in India. However, this funding is not going directly to India, but is supported through purchase order deductions. This has sparked speculation that the United States is not acting simply to help India, but wants India to place orders for American car companies. This move has put India in an anti-trapped situation.
In this regard, the author believes that if India agrees with the United States 3The $900 million grant package could fall into a situation where the road is in the worst place. First, electric cars in the U.S.** are higher than China's BYD, even minus 3The subsidy of 900 million US dollars will still be higher than the cooperation with Chinese companies, which is not a good deal for India. Secondly, the United States has committed only 3$900 million, and there is no promise that American companies will agree to India's demand for a 10% deposit. According to India's practice, it is likely that American companies will not agree to this plan, but will ask India to pay the order funds directly. This will put India in a fundraising dilemma and will require more money to be paid than it would be with China. Of course, India can do the same to force American companies to agree, but American companies are not very talkative, and now that the United States has stepped up, it is difficult for India to do more. From a personal analysis, even if India is stuck in the ** road situation, it only spends a little more money to solve the current electric bus shortage. Crucially, however, doing so can have serious consequences. The large number of U.S. companies entering the country may have a direct impact on the development of India's local electric bus manufacturers, and is contrary to India's original intention of improving its local strength. In addition, it has further slowed down the development of the market competitiveness of local Indian enterprises. Therefore, the author believes that India should honestly cooperate with Chinese enterprises and pay for orders to meet the current shortfall, rather than diverting procurement objects to avoid falling into a situation of leading the way.
India's EV shortage has forced them to find the right business urgently. At the same time, the United States has given India a certain level of support, but India should recognize the true face of this support. Although the United States has promised financial subsidies, there is no guarantee that Indian companies will receive the same treatment. Opting for a U.S.-based option could cost India more, while ignoring the prospects of homegrown EV manufacturers.
However, India's current focus is on filling the gap in electric buses, which is crucial. In order to meet the demand, India needs to submit order funds as soon as possible and establish stable cooperative relations with Chinese companies. Partnering with Chinese companies can help India gain access to cost-effective electric vehicles and boost the development of the local EV industry.
In the midst of the complex business choices, India needs to clarify its strategic goals. They should stick to the development of the local electric vehicle industry and encourage local companies to innovate independently. At the same time, India can also seek international cooperation and technology exchanges to strengthen the research and development capacity of electric vehicle technology.
India's plans for the development of electric buses face a number of challenges, including a huge gap and finding the right vendor. However, in the face of these challenges, India should remain sober-minded, choose its partners carefully, and focus on the development of its local EV industry. Despite the financial support provided by the United States, India needs to be aware of the possible benefits behind this support.
In addition, India should actively explore opportunities for international cooperation and technology exchanges, and strengthen its R&D capabilities for electric vehicle technology. It is only through independent innovation and technological progress that India will be able to achieve long-term development in the field of electric vehicles.
Finally, India should consider not sacrificing the development of its own industries for the sake of immediate interests, but to maintain its technological autonomy and market competitiveness. Only in this way will India be able to take solid steps in the clean energy transition and contribute to achieving sustainable development.