India Wants to Get Rid of Its Dependence on China and Offers an Olive Branch to Tesla

India not only is the world's fourth largest auto market, but also is a major producer of autos. In the fiscal year 2019, the amount of India's autos was 30.92 million. However, the Indian auto industry has always had trouble, that is, auto parts rely on China. 
 
Data show that in 2018 to 2019 fiscal year, 27% of India's imported auto parts cost 17.6 billion US dollars came from China. The reason for this problem is that India does not have mature technology and absolute price advantages. Therefore, importing auto parts from China has become India's last resort. However, India does not want to continue this situation. After all, the situation of core components being subject to other nations restricts the real development of the Indian auto industry and is not conducive to industrial safety. Therefore, India is going to get rid of its dependence on Chinese imports and put it on the agenda.
 
A few days ago, "The Times of India" quoted the Minister of Heavy Industry of India as saying that India would introduce relevant policies to achieve a budget allocation of up to 570 billion rupees to the Indian auto industry to expand the scale of Indian auto exports and the number of employees. There is also a very important point in this policy, that is, the Indian auto industry speeds up national production and reduces its dependence on Chinese products.
 


Moreover, the CEO of the National Institute of Transformation in India also emphasized that it was necessary to strengthen nationalization and lessen dependence on imports, especially to reduce dependence on Chinese products. From the attitudes of many key figures in India, it is not difficult to see that the Indian government is anxious about relying on imported auto parts and wants to change this situation. However, this is not a small challenge for India. After all, the key parts of automobiles require high technology and great investment. This is not a small challenge for a company or a single industry.
 
For this reason, while promoting the development of the national automobile manufacturing industry, India also hopes to speed up national production with the help of foreign-funded enterprises. In July of this year, the CEO of Tesla Musk said that if imported cars could succeed in India, then Tesla would expect to set up factories in India. This has attracted the attention of the Indian Auto Parts Manufacturer Association. If it is true as Tesla said, then Indian auto suppliers will benefit greatly and impetus will be provided for the development of Indian auto parts. In this regard, the president of the Indian Auto Parts Manufacturer Association expressed his welcome to all domestic and foreign companies and any increase in production capacity in the automotive sub-sector. Moreover, the association has begun negotiations with the Indian government.
 
However, it is not an easy task for India to attract Tesla to build a factory. After all, Tesla has given the premise. In the past two years, Indian car sales have shown a sluggish trend, and it may be difficult to meet Tesla's requirements. Moreover, it is difficult for India to build a powerful electric vehicle parts supply chain for a while, which cannot support Tesla's establishment. It can be seen that it is not easy for India to make Tesla build a factory. Of course, India still has  opportunities. After all, India has a great consumer group, and India's consumption level is constantly improving. The Indian auto market will have more room for development in the future. Tesla is naturally not willing to give up this vast market. Moreover, since India intends to develop its own automobile manufacturing industry, it will naturally give Tesla many preferential policies to attract Tesla to build factories here. In the end, whether or not India's plan can be successful, let us wait and see.