The end of the US-China clash is still a blur. Meanwhile, India has been striving through and joined hands with several major technology-affiliated companies like Apple‘s contract makers namely Foxconn, Wistron, and Pegatron. With the recent development, Tesla seems to have taken an interest in India too.
China and Tesla’s relationship
Over $60 billion has been invested by the Chinese government in electric mobility space. Tesla is one of the automotive companies eligible for the investments, in the form of subsidies and incentives. Mint revealed the Tesla 3s is free from the 10% sales tax. Tesla even receives around $3,500 subsidy on each car. The 50 years lease on Shanghai Gigafactory is enough proof of Tesla and China’s relationship. Not to mention China’s local banks have contributed a lot to finance the facility.
The future prospect for Tesla in India compared to China in a glance
China and India’s market in automotive is a fierce competition. Mint reports in 2019, electronic vehicle sales contribute 4.7% of the total sales in China. The number is accounted from 21 million sales of passenger cars in 2019. By 2025, China intends to amplify it up to 25%.
India, on the other hand, recorded a 20% growth in electronic vehicle sales, though electric two-wheelers dominate the percentage. The future for electronic vehicles in India is also ambiguous. According to Mint, India targets a 30% sales for private cars, 70% for commercial cars, 40% for buses, and 80% for two- and three-wheelers by 2030.
However, India still has a comparably low sales to China. Sohinder Gill of Society of Manufacturers of Electric Vehicles (SMEV) mentioned that both countries undoubtedly have different dynamics. He further mentions income and consumption per capita, running and buying capacity, along with the government’s reluctance as the major barriers for China and India’s differing dynamics.
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