India more protectionist than Europe!

Unlike France and Europe, which welcomes cars produced in China, including high-end ones, India does not want Teslas produced in Shanghai.

Elon Musk has been warned, if he wants to develop in what could be the new high-potential market of tomorrow after China, he will have to build a factory there. While some continents such as Europe have no problem importing cars produced in China (sometimes by European brands themselves, such as DS or Dacia), in India, the state is clearly much more protectionist. The Minister of Transport and Highways, Nitin Gadkari, announced to the press that “producing in China and selling in India is not a good proposal”, thus reframing Tesla, which is trying to negotiate to reduce customs charges as much as possible between the China and India for the sale of vehicles.

China, the engine of Tesla

Last year, Tesla narrowly failed to reach one million sales, falling to 936,172 units. And 484,130 of them were produced in China, in the Shanghai factory which is now running almost at full capacity since its maximum capacity is around 500,000 cars (the occupancy rate of Tesla factories could make many “historic” manufacturers green with envy “). And many of these Chinese Teslas have been exported to Europe, while the Gigafactory in Berlin is barely opening its doors, producing only Model Ys for the time being.

But now, in India, the situation is very different, Indian political power not being “convinced” by Tesla lobbying. To develop in India, it will probably be necessary to produce locally, as do other foreign manufacturers: Skoda, in particular, is targeting India with its Kushaq, assembled in Pune.

Published on 04/27/2022 Updated 04/27/2022

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