India sent 22.8 billion, but Chinese companies did not ask for it directly, because of one condition

Mondo Entertainment Updated on 2024-01-30

When a seemingly simple business becomes complicated, there is often a strategic chess game behind it. India, a country seen as the future of the EV market, is undergoing a quiet market change. The latest data shows thatBy 2025, the proportion of electric buses in India's new bus sales is expected to reach a staggering figure of 11 to 13 percent。It's not hard to imagine that this market will be a hot spot for many companies to dream of. StillWhen the Chinese company BYD got involved, the sudden twists and turns in the deal revealed more information.

In the first half of this year, India said it was willing to spend 22.8 billion rupees, or about 2 billion yuan, to buy 1,000 electric buses produced by BYD. This figure is undoubtedly very important for BYD, which is seeking overseas markets, and this order is likely to become a stepping stone for BYD to further enhance its influence in the Indian market. What's more, according to official data, there are currently only 4,506 electric buses in India, which is only 125%, so there is great potential for cooperation with India in the field of electric buses. Everything seems to be going well, and both sides are showing a strong willingness to cooperate, however,Just as the final details were being finalized, there was an unexpected situation. The Indian side put forward a request, hoping to pay 10% of the advance payment first, so that BYD will deliver the goods first, and the balance will be settled after receiving the goods. Although this is a very common international** practice, given the special business environment in India, BYD is clearly reluctant to accept this risk easily. Eventually, after a tug-of-war, the two sides still reached an agreement, but there was a change in the payment method. India must increase its advance payment to 80% so that BYD can confidently deliver 1,000 electric buses. Although this change does not change the essence of cooperation, it does reveal a signal that although India's electric bus market is very large, it is not possible to cooperate with India casually.

There are many lessons to be learned from this event. First of all, the explosive growth of India's electric bus market presents both opportunities and challenges for global businesses. After all, in a fast-growing market, how to ensure the safety and efficiency of transactions is an important problem that major enterprises need to solve. Secondly, the cooperation between China and India on electric buses also reflects many problems, which deserve serious study by Chinese companies. Moving into the future, as the Indian electric bus market continues to expand, there should be more similar deals between China and India, and what we have to do is to strictly review every detail of cooperation, and at the same time obtain overseas orders, we cannot take some risks for no reason. Today, India has not been affected by the current turmoil of the partnership with Chinese electric buses, but has instead proposed a larger electric bus plan. Recently, India launched the astonishing "50,000 Electric Bus Initiative", promising to achieve an ambitious goal of 50,000 electric buses on the road by 2027. It is worth mentioning that behind this plan, the United States actually praised it and said that it would "donate", which could not help but attract the attention of the world. However, in this cooperation, many people are very puzzled whether the truth is whether the United States and India jointly promote green energy, or whether it implies deeper strategic considerations.

Judging from the current situation in India, although India has actively promoted the electric bus project since 2014, the effect can only be described as "lagging behind". As of May this year, there were only 4,506 electric buses in India, which accounts for less than 125%。This not only reflects that India's pace in the field of new energy vehicles is indeed slow, but also reveals that India has a huge potential market for electric buses. In fact, for India, the reason why it is so hard to promote the relevant plan is because the United Nations has increasingly severe requirements for energy conservation and emission reduction, and India, as the world's fifth largest automobile market, is facing the pressure and opportunities of transformation and upgrading. China, the United States, Europe and other countries have made clear the direction of development and want to step into the era of electric vehicles. It can be said that India's "50,000 electric bus plan" is a key step towards the center of the international stage, and at the same time, it also aims to get rid of the long-standing dilemma of energy dependence. However, regarding the so-called "donation" that the United States is trying to make to the program, there is widespread opinion that this may not be a simple funding. This kind of help is likely to take the form of some form of offset transaction or deferred payment, and some of the fees will be waived after the purchase of the car in India is completed, which does not reflect the "generosity" of the United States at all, but rather reveals other caution on the part of the United States.

From a strategic point of view, India and the United States have close cooperation at multiple levels, especially India is an important part of the U.S. "Indo-Pacific Strategy".Therefore, even if the United States is not optimistic about India, it must support India's electric bus planThis will help strengthen the strategic ties between the two sides and lay the foundation for deeper military and diplomatic cooperation in the future. Overall, if India can implement the plan as planned, and effectively promote the electric bus plan with the support of the United States, it will not only make a huge contribution to its domestic environmental governance, but also express India's green development position and technological confidence to the world. But if it fails to do so due to practical challenges, India may face more ridicule from the international community. In addition, combined with the attitudes of Chinese companies and the United States towards India's relevant plans, it can be found that Chinese companies have always remained calm in international cooperation, while the United States does not seem to have considered whether India's plan is a "big hole" at all.

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