India put forward 22.8 billion conditions, and China wisely avoided pitfalls and did not repeat Russia's mistakes
India has a request for the $22.8 billion, but China will not repeat the path that Russia has taken.
Not long ago, India "collapsed" talks with two prominent companies due to an order for electric vehicles worth Rs 2,280 crore. In fact, in response to climate change, India has adopted a massive power transition project that calls for the installation of 10,000 electric buses. As a result, India and Chinese company BYD are negotiating for 1,000 new energy vehicles. Just when the two sides were about to make a deal, India suddenly put forward a strange condition, that is, BYD could ship the goods in advance and pay the remaining payment after India confirmed the order. This request made the cooperation between the two sides completely fail. What is India's next target?Can you really make your wish come true?
1) Optional for the Indian electric vehicle project and BYD.
In August, India, the world's fifth-largest car market, passed a massive e-bike conversion project. A total of Rs 58,000 crore has been invested in the project, and over the next decade, India will see the adoption of electric buses in 169 cities to eventually reach 10,000 units.
India has invested a lot of money in electric vehicles for two reasons: first, India is a country with a large population, and it urgently needs to respond to the United Nations' call for "decarbonization" and promote the research and development of new energy vehicles, so as to fulfill its promise to reduce emissions to the global environment;Second, with the rapid transformation of the world's new energy vehicle market situation, electric vehicles have become an area that automakers must compete for, and India is naturally reluctant to be eliminated by this trend.
However, with the current state of technology in India, it is still difficult to develop and manufacture high-quality buses on a large scale. To ensure this, India has made the choice of buying electric vehicles from abroad. After some search and comparison, Chinese company BYD (BYD) failed to win the bid, which demanded the delivery of 1,000 electric buses worth a total of 2,280 crore, an important move by India.
As a well-known new energy vehicle brand in China, BYD has many years of research and manufacturing technology accumulation in the field of new energy. India's "throwing money" procurement this time is a good time for BYD to expand abroad. The two sides agreed, and soon began to negotiate, and it seemed that everything was going according to plan. However, this situation did not last long, and at this critical moment, the talks between the two sides took an unexpected turn.
2) BYD failed to negotiate with India and demanded "delivery first and payment later".
When BYD signed a contract with India, it is said that India ** suddenly issued a strange request: after paying a 10% deposit (200 million yuan), BYD must deliver all 1,000 units in advance;When the car is obtained from the Indian side, and it has been tested and verified, the remaining 90% can be paid.
In the world economy, "use now, pay later" is a very common form. The reason why India does this is largely out of consideration for product quality and reducing product safety hazards. However, India has a history of "cheating people", and it is clear that it is difficult for Chinese companies to trust them.
In fact, India used to do this and deceived many countries and companies. Russia, for example, has already lost badly on India's energy deal. At that time, India repaid billions of dollars of debt to ** on the basis of its own currency, but because in the world, Russia has very little currency, so even if it gets dollars, there is no way to withdraw them. For Russians, this money is equal to "waste paper".
In this case, BYD resolutely vetoed the request made by the Indian side. There is a good chance that the Indians will come again after the delivery and give them the rest of the money. At that time, they will not only sell the car, but will also be "pitted" by India. For such a scoundrel-like **, BYD decided to conduct thorough negotiations with the other party and refused to accept it.
3) India turns to the United States for a new electric vehicle project.
After India was rejected by BYD, it began to look for a new partner. Earlier, the company had already unveiled a major electric bus project to put 50,000 electric buses into service by 2027. As soon as this news came out, the United States immediately expressed its strong approval and called on the private enterprises and the state of the United States to provide "donations" to India.
The active participation of the United States is largely based on geographical considerations. In the process of the United States' encirclement of China, India plays an important role in Indo-Pacific policy. Strengthening relations with India will help the United States expand its influence in the Middle East.
However, we must be clear that behind the "goodwill" of the United States often hides intrigues. The funding for the electric vehicle project in India is largely aimed at tapping into the Indian market so that it can profit from the subsequent repair and spare parts supply. When the time comes, the "assistance" of the United States to them can be fully compensated for by expensive maintenance and renewal.
Therefore, there is still some bias against the United States and India. With the example of India, no one knows if it can afford to pay the rest of the money. Moreover, if U.S. companies are deceived by India**, they are likely to suffer the consequences, which defeats the original intent of the funding package.
Q: Why didn't India buy cars from other countries this time, but from the Chinese company BYD?
A: In India, we chose BYD because of its rich experience in developing and operating electric vehicles. Compared to other competitors, BYD's electric vehicles are more mature and reliable, and can provide the Indian market with a sufficient number of vehicles to meet the needs of the domestic market. In addition, India's pricing power for Chinese companies also plays a big role.
Q: Why did BYD so resolutely reject India's request?
A: That's largely because there are a lot of examples of deception in India. Learning from Russia's experience of losses, Chinese companies are reluctant to take any more risks before delivery. Because after the goods are delivered, India has the lead in the negotiations. There is a good chance that they will do the same and either not pay the remaining amount in a timely manner or not pay the remaining amount at all. Not only will it be free, but India will also find excuses to default on their payments. Therefore, BYD's decision is wise and the best way to go.
Q3: What is the motivation for U.S. funding for electric vehicle projects in India?
A: Much of this is determined by the geographic policy of the United States. In doing so, the United States hopes to strengthen its influence in India as a way to defend itself against China's actions in the Indo-Pacific region. In addition, the long-term profit that India can make from the maintenance process of electric vehicles in the future is also a significant incentive to receive funding from the United States.
This matter quickly became a hot topic on the Internet. Some netizens are no strangers to India's rogue behavior, "India has always been good at cheating, and BYD discovered our conspiracy, and they are also to blame." Some people also feel that BYD is too careful: "With a deposit of 200 million, we can try it, after all, India is a big market."
Someone else has made an in-depth analysis of the relationship between the United States and India: "The United States, in the name of protecting India's environment, is actually opening up a new market for India, and their purpose is the same as ours." Overall, most netizens agreed with BYD's firm veto of the decision.
From this case, we can clearly see the two "killer features" of Indian fraud: one is to lure the enemy into the urn in advance, promising a large number of orders at the beginning to gain the trust of the opponent;The second is that at the last step, he suddenly asks for additional requirements and blackmails with his own position. Similar rogue behavior is commonplace in India, but few countries are alert to it, and it is quick to detect it.
In stark contrast, BYD, as a Chinese enterprise, behaved extremely cautiously this time. From the words "use now, pay later", Feimas smelled that something was wrong. Such a resolute rejection of India's request also shows the determination and adaptability of Chinese enterprises in terms of policy, which is a very valuable work and a very valuable work.
If the United States does take over the project, then they may well fall victim to India. After all, the United States still overestimated its own negotiating power and India's credibility. When the rest of the money is in hand, the expressions of American companies may become sluggish again.
Thus, the failure of the Indian and American companies is another reminder to us. In cooperation with India, we must guard against their intrigues and intrigues, and we must not make them blindly believe this. The more critical the moment, the more you need to be calm and careful. In order not to fall into the trap of "pit players", they must be well prepared.
India wants to use foreign funds to support its own electric vehicle projects, which is a very important development strategy. In practice, though, they haven't abandoned the insidious methods of the past. Chinese companies see through market tricks, US companies take risks, and India's thinking seems to be tense again, making people unpredictable.
We'll see. Will India be able to agree with the Americans, and will American companies repeat the mistakes that Russia has made?This matter has to be seen.