Mr. Musk has to thread the needle on this one lest his Chines supply chain begin experiencing, ah, slowdowns. Alternatively, he goes big fast, in which case he might just leave the Chinese market to BYD and the other half-dozen Chinese EV manufacturers that will be among the survivors of the coming shakeout.
From the Wall Street Journal, March 15:
Import-duty cut for manufacturers who invest big in domestic production follows months of talks with car maker
In a step largely aimed at wooing Tesla, India said Friday that it would drastically cut import duties on certain electric vehicles for manufacturers who invest at least $500 million to produce their cars in the country, the world’s third-largest automotive market.
The change in policy, which requires manufacturers to set up facilities within three years, comes after Indian Prime Minister Narendra Modi met Tesla Chief Executive Elon Musk on a state visit to the U.S. in June. Following the meeting, which Musk called “fantastic,” the Tesla chief executive said he hoped to visit India in 2024.
Modi “really cares about India because he is pushing us to make significant investments in India, which is something that we intend to do. We just have to figure out the right timing,” Musk told reporters.
Since that visit, months of talks have taken place between Tesla executives and top Indian officials. India wants to draw more global investment from high-tech firms as part of its efforts to become a technology manufacturing hub and create jobs. Musk has long expressed interest in being in India, but has also said that India’s import duties are far too high.
India taxes imported electric vehicles at up to 100% depending on their price. The new policy, which is effective immediately, would reduce duties to 15% for passenger EV cars with import prices of $35,000 and above. The tariff reduction would be available for up to 8,000 cars a year and a limit of 40,000 cars in total over a span of five years, according to the Trade Ministry.
Tesla’s Model 3 is listed on its website as starting at nearly $39,000 in the U.S., excluding any credits or discounts....
....MUCH MORE
