China is upset that Tesla is preparing to open a factory in India. Because Tesla wants to diversify its Asian business apart from China. Elon Musk’s plan to set up a Tesla electric vehicle plant in India has received sharp criticism from both the Chinese government and its media. Both raise concerns about the feasibility of Tesla’s venture in the Indian market.
Musk’s announcement of his intention to meet Prime Minister Narendra Modi has fueled speculation about Tesla’s ambitious project. Which could include an investment of several billion dollars to manufacture entry-level electric cars. Which could potentially be named Model 2 and could be priced around Rs 25 lakh.
The Global Times is a daily tabloid newspaper under the auspices of the People’s Daily, the flagship newspaper of the Chinese Communist Party. Chinese government officials are skeptical of India’s preparedness to accommodate Tesla’s operations, The Global Times reports. He has expressed concerns about the country’s “under-prepared” and “immature market”. While it claimed that the country “lacks adequate infrastructure for EVs”.
The Global Times report further states that despite rapid growth, EV adoption in India is still in its early stages. Because EVs contribute only 2.3 percent of total passenger vehicle sales in India.
Furthermore, the article points out India’s dependence on coal for power generation. Which could hinder its ability to achieve climate goals. It also highlighted limited domestic production of key EV components such as lithium-ion batteries. Which is a significant hurdle for Tesla’s operations in India. “One of the biggest issues is limited domestic production of key components for EVs such as lithium-ion batteries,” the article said. Efforts to build an indigenous EV supply chain in India are beginning comparatively late.”
The Government of India has recently approved a new electric vehicle policy. Which is partly in response to Musk’s persistent requests. The policy allows the import of fully built electric cars at low import duties for five years in exchange for a minimum investment of $500 million to start local manufacturing.
It should be noted that Chinese EV giants BYD and Great Wall Motor wanted to set up major factories in India despite their criticisms about India’s “under-prepared” and “immature market”. But they were rejected by the Narendra Modi-led government.
BYD was seeking permission to set up a $1 billion factory in India in partnership with Hyderabad-based Megha Engineering and Infrastructure Ltd. Which was rejected by the Central Government back in 2023. Similarly, in 2022, China’s Great Wall Motors wanted to buy a manufacturing plant in India from General Motors. However, the Indian government blocked the sale.
China’s reaction to Tesla’s potential entry into India reflects broader geopolitical tensions and competition in the global automotive industry. Recent actions by the Indian government, such as rejecting proposals from Chinese automakers like BYD and Great Wall Motor, highlight India’s efforts to promote domestic manufacturing in the electric vehicle sector and protect its strategic interests. Overcoming these complexities, Tesla’s decision to invest in India will undoubtedly shape the future landscape of the country’s auto industry and its relations with major global giants like China.
Total Users : 50681
Total views : 75360