Finance
China’s loss in India could be Elon Musk’s gain.
Tesla has had a red-carpet welcome from India for its proposal to invest in the country, while its largest rival in electric vehicles, China’s BYD, has been stopped cold by increased scrutiny from New Delhi.
The result could be an opening for Tesla to negotiate terms for an entry to the world’s third-largest auto market without the competitive threat from BYD that it faces in other emerging markets, like Thailand.
Since a meeting between Musk and Indian Prime Minister Narendra Modi in June in New York, Tesla has fast-tracked closed-door discussions with Indian officials on a potential plant investment and plans to build a new low-cost $24,000 (roughly Rs. 19.85 lakh) EV.
Those talks continued over the past week with Tesla discussing minute details of its plans to gain access to India’s fast-growing EV market, and PM Modi personally tracking developments, sources say.
Those meetings, though, have been strictly kept under wraps, with officials putting out no photos on social media of handshakes with executives which otherwise is a usual affair after high-profile meetings.
BYD, meanwhile, appears to be taking a backseat. Months after seeking clearance for its own $1 billion (roughly Rs. 8,233 crore) investment in India, BYD is no longer keen to pursue the approval, Reuters reported. In a further setback, BYD is facing an investigation over allegations that it underpaid import tax in India.
Among other concerns, Indian officials are worried about the national security implications of Chinese-made vehicles and the data they could collect. India is “uncomfortable with Chinese automakers,” an official said.
