INDIA IN NEED TO STEP UP ITS EV GAME

Last week, elon musk confirmed that tesla inc will be entering the Indian market soon, much to the excitement of its fans, who had been waiting for this moment for years. Tesla has been planning to enter India through launch of Model 3 which would be ranging upto Rs.55 Lakhs.

Analysts claim that there will be an EV revolution in India as time passes, but one of the major factor ie affordability, may dampen the spirits and excitement of the major chunk of customers. Battery pricing may play a crucial role in the overall pricing of the EV. There is ambiguity about the mode of manufacturing at the present as well.

India is the third biggest economy in the world and country of the working class, it still lacks certain factors which could welcome EVs, unlike China, which is the first country where the US based company set up its factory in Shanghai. According to the figures provided by Bloomberg New Energy Finance, EVs account for about 5% of China’s annual car sales whereas it stands at 1% in India. The Chinese are able to bloom in this field due to the generous government subsidies, a population yearning for eco friendly and green vehicles. The country is heading toward disrupting the current global auto industry landscape by rolling out new EV models and a suitable, diverse ecosystem. 75% of the auto sales in India take place under the $10000 bracket, which basically means Tesla would only appeal to 1% market in India, which is equivalent to half the price in China. India launched a Faster Adoption and Manufacturing of Hybrid and EV (FAME) plan, which offers subsidies and encourages EV purchases, cut GST on EVs and much more. But this won’t do much to help lower the price for would-be Tesla customers, since the upper limit for an EV to qualify for subsidies is 1.5 million rupees. Teslas will cost more than that and therefore won’t be eligible.

By educating people about sustainable energy, stepping up the manufacturing plants and provision of subsidies may prove success for TESLA in India.

Comments

Stagflation: A Threat to India

India is entering into the stage of stagflation, just 2 years ago it was expanding at 8% and emerging as a major global player, the situation has come down to this. With higher prices of food, The new citizenship act, and the central bank's target, India is meeting its slowest development in a decade. The inflation in December 2019 increased to 7.35 percent which was the highest since July 2014, which is past the RBI limit of 6%. But what led to this situation? We have had demonetization in 2016, the implementation of GST followed by many other policies but what led to this? Let's look at some facts. The consumption of volatile oil makes up about 60% of gross domestic product which puts off all the investment plans. Economic growth in the fiscal year through March 31 is set to slow to an estimated 5%. Teresa John, an economist at Nirmal Bang Equities Pvt in Mumbai, quoted “The recovery is likely to be very gradual and a stagflation scenario is likely. ” The government has...

Changing Environment For Local Business In Sri Lanka; Government Initiates The Revolution

Local industries and businesses are the backbone of the economy of any country. Additionally, Sri Lankan Government defines a local company as one with a minimum ownership of 51% of a Sri Lankan. To help these companies grow, the Sri Lankan Finance Ministry has proclaimed a circular enlisting the priorities to the local companies. Moreover, this move from the government may bring some salient alterations in the condition of the local manufacturers. The government has also come with up steps that will augment the local industries across the different domains. These domains include IT sector, construction, etc. The circular, as issued by the government includes relevant documentation regarding sourcing of resources and products. Additionally, sources point towards the fact that the government is hoping to extend support to the domestic sector and help them grow. Besides, the major focus is on the three sectors- IT software and hardware, construction and furniture and allied products. Pos...

Significance of the “Developed Country” Tag for India

By Xeena Mehta The officials of the United States Trade Representative (USTR) uphold a list of countries that categorises countries as “developing”, “developed”, and “least-developed”. Countries that are classified as “developing” have permissions to export certain goods to the U.S. without being hit by heavy legal tariffs that are bind to be imposed on goods from “developed” countries. The “developing country” tag was originated by U.S. Trade Act of 1974, to aid poor countries develop faster. World Trade Organization also acceded to grant trade benefits to countries that were classified as poor. If noticed we can see that about two-thirds of countries that are members of the WTO classify themselves as “developing” countries and avail fore deals. Any such classification of whether a country is “developing” or not is entirely objective. While the economic progress achieved by India and China have achieved over the last few decades is seen as a valid reason to get rid of their s...

Entrepreneur Digest

Search This Blog