In recent years, with the rise of the new energy industry, BYD and CATL have become leaders in the field, and their leading technological advantages have left European and American companies in the dust. In this context, new energy buses have become the mainstream means of transportation implemented by various countries. However, in India's plan to promote clean energy, it faces the dilemma of weak technology and can only rely on imports. And BYD happens to be the best partner to meet India's needs. However, due to the Indian side's advantage in the order negotiations, BYD rejected the order, triggering a series of chain reactions. The United States then took advantage of the weakness and promised to provide 3$900 million in subsidies, but in fact through the reduction of purchase orders. This trap has left India in a difficult position and has not addressed the funding gap. This article will analyze the consequences of India's pit and its impact on the new energy market.
As a latecomer to the new energy market, India is under pressure to replace fuel buses and reduce exhaust pollution. However, due to weak technology, India can only rely on imports from other countries in the world, which has created a huge gap in its market. According to market research statistics, India's gap in new energy buses has reached 9,700, and it is estimated that only BYD can meet this production capacity in the world.
However, India is trying to take advantage of BYD when it comes to order negotiations. They are only willing to pay a 10% deposit but demand immediate delivery of all the cars. This dishonest behavior made BYD directly reject the order. Subsequently, India** took a series of "retaliatory actions" to exert pressure on overseas companies. This deterioration of the market environment has caused India to lose the trust of many of its partners.
Faced with the volatile situation in the Indian market, the Biden team decided to take advantage of the situation and promised to provide a cumulative 3The subsidy of US$900 million will be used to purchase an order for 50,000 electric buses. However, this seemingly generous aid is actually a trap.
The Biden team is not directly offering 3$900 million in cash, but through the reduction of purchase orders, resulting in a corresponding reduction in orders**. In this way, India appears to be receiving subsidies from the United States, but in reality India still has to pay a higher purchase price. India is only willing to provide a 10% deposit, which shows that India is relatively short of funds and takes risks. Moreover, it is still unknown whether the United States will be willing to accept such an order.
In addition, the business environment in the Indian market has been damaged, and unreasonable laws and regulations and the fine system have made overseas companies have no *** American companies have also been cheated by the Indian market. Therefore, the Biden team's attempt to use conventional means to restrict the Indian market may only be a gift of money to India.
In the process of purchasing American buses, India is still facing financial difficulties. Moreover, the U.S. may not have the capacity to mass-produce electric buses, and the delivery process may be long and require additional capital investment. As a result, India's intended savings could instead increase, and the overall procurement plan could be delayed.
In addition, once the U.S. new energy vehicles fully enter the Indian market, they are likely to carry out monopoly operations, which will hinder the development of the local new energy industry. India, on the other hand, has chosen to turn away the opportunity for fair and open cooperation, favoring American companies. This choice will undoubtedly change the fate of India's new energy market.
India's planned transformation to become a major user of new energy buses faces serious problems for the foreseeable future. While India** tried to solve the problem by cooperating with the United States, it fell into a trap. The so-called aid of the Biden team does not actually solve India's funding gap. On the contrary, it could add to India's fiscal burden and trap it in unfavourable competition with U.S. companies. The future development of India's new energy market will be affected by this event, and whether it can maintain a fair and open competitive environment will be able to draw more accurate conclusions after the development trend of the market appears.