Is India using a cover?
“As of now, we are an unofficial club because Tesla does not sell in India. We hope that we become an official club when they start selling,” said Nikhil Chaudhary, the Founder of Tesla Club.
“I sold off my Audi Q3 and Mercedes because I do not like driving them. Electric cars are far superior to conventional vehicles. I have been driving an EV enough to know that infra will not be a problem,” said Arun Bhat, the Co-Founder of Tesla Club.
Such was the excitement shown by them and many, to welcome the battery company — Tesla Inc. in India.
Dozens of tweets on Twitter’s timeline rolled in,
The company decided to base its grounds in Bangalore, Karnataka.
Why Bangalore?
In 2020, Nitin Gadkari announced Tesla’s arrival in India. He mentioned that sales would be monitored, after which the company can base its R&D centre here. The company registered itself after several years of delay. A lot of people were confused with the technoking’s choice of location. The sole reason for his choice was the collection of R&D centres that already existed within the state. With it being India’s IT hub, advanced technology and the finest machinery could be procured.
Has India been welcoming?
India increased its import tax to range between 60–100% on Electric Vehicles. Why? All thanks to India’s Import Substitution Industrialisation (ISI), the country is investing in the promotion of the ‘Make in India’ initiative. In the lead to become ‘self-reliant,’
“India’s Make in India policy is giving dividends. We’re making world-class products and exporting them,” said Nirmala Sitharaman, the Finance Minister.
According to media reports, the Micro, Small and Medium Enterprises (MSMEs) in India have already started setting up local supply chains, so that they can avoid paying import taxes. But, does India serve as an ideal resource base? For instance, there might be a lot of raw materials that would usually come through exports, but now, it will create gaps which will lead to lesser production and wider gaps.
A probable twist
While the ‘Make in India’ initiative is just one way to look at it, in the 2020 Budget, Sitharaman announced a hike in duties on the import of specific mobile parts. Interestingly, these parts were imported from China. Even in the case of Tesla, its second-largest market lies in China, after the United States. Now we all know the tension that has been brewing between India and China. The question that arises is, is India really raising the bar on import taxes to encourage its self-reliance or steer clear from China?
Despite these alterations, Musk hoped that the country would initiate temporary relaxations in tariffs, but in vain. ‘Going electric’ can be another trend that the country might create and give fuel to, but Musk wasn’t wrong when he tweeted,
He further highlighted the fact that India’s protectionist move against international markets can lead to a huge hurdle for the country in the future. But there is also a possibility that the country might be taking up the ‘Make in India’ initiative as a cover to distance from its not so likeable neighbour, China. Even then, if electronic vehicles were to be a part of the country, will it be feasible? Looking at the traffic and affordability rates within the country, there is a huge difference in petrol, diesel and electric vehicles.
As the government has announced its decision on creating fuelling stations throughout the country, the demand for electricity will considerably increase. Moreover, the country will have to top up its game by doubling its coal production. The concern is, if electric cars won’t create emissions, can the same be said for the source that will be powering them?
