[Source/Observer Network, Pan Youchen; Editor/Gao Shen] According to a report by Bloomberg, due to China's control over rare earth exports, India's target of 50% local content for electric vehicle manufacturers and suppliers is facing greater doubt. The Indian government plans to relax this requirement to make it easier for carmakers to obtain incentives and attract more investment.

Previously, on June 2nd, India released its "flagship electric vehicle policy," offering preferential policies of reducing import tariffs to 15% for electric vehicle companies in India, with up to 8,000 vehicles eligible annually. However, the policy requires enterprises to invest at least 415 million rupees (approximately RMB 34.65 million) in building local factories in India and achieve corresponding local production ratios within a specified time frame, including achieving 25% localization within three years and 50% within five years.

Electric vehicles charging in residential buildings Visual China

In addition, approved automakers must have a minimum income of 50 billion rupees (approximately RMB 4.2 billion) in the fourth year and no less than 75 billion rupees (approximately RMB 6.26 billion) in the fifth year. Those who fail to meet these targets will face fines of up to 3%, calculated based on the income gap.

The Ministry of Heavy Industry of India once stated that this policy was formulated after a year of discussion, aiming to turn India into a global electric vehicle manufacturing hub. Minister of Heavy Industries Kumaraswamy said that many well-known international automakers, such as Mercedes-Benz, Volkswagen, and Hyundai Kia, have expressed intentions to participate in investing in the Indian market.

However, most multinational automakers do not immediately intend to invest in India. Some well-known electric vehicle manufacturers, such as Tesla, only plan to set up sales outlets rather than production bases in India. Kumaraswamy also admitted that although the Indian government has introduced several electric vehicle policies in recent years to attract global automakers, they are actually not interested in producing cars in India.

He also acknowledged that Tesla currently does not plan to set up a factory in India. Meanwhile, former U.S. President Trump publicly stated multiple times that if Tesla were to set up a factory in India, it would be "very unfair."

With China's control over rare earth exports, India's automotive manufacturing industry is also constrained, making the goal of achieving a 50% localization rate even further out of reach. Therefore, the Indian government is planning to relax this target to attract more investment.

According to a report by Bloomberg citing sources, during his meeting with Chinese Vice Foreign Minister Sun Weidong in New Delhi on June 12th, Indian Foreign Secretary Tang Yongsheng communicated about China's control over rare earth exports. Both sides agreed to continue dialogue on key mineral supply and broader economic and trade issues in the future.

According to the website of China's Ministry of Foreign Affairs, on June 12th, Vice Foreign Minister Sun Weidong held the new round of Sino-Indian deputy ministerial/secretary-level dialogue with Indian Foreign Secretary Tang Yongsheng in New Delhi and met with Indian National Security Advisor Doval.

New round of Sino-Indian deputy ministerial/secretary-level dialogue Ministry of Foreign Affairs website

Sun Weidong stated that under the joint efforts of both sides, current Sino-Indian relations are maintaining an unprecedented momentum of improvement and development. Both parties should be guided by the important consensus reached during the leaders' meeting in Kazan, adhere to viewing and handling Sino-Indian relations from a strategic height and long-term perspective, continuously enhance political trust, strive to advance exchanges and cooperation in various fields, properly handle contradictions and differences, and promote Sino-Indian relations to develop along a healthy and stable track. They should jointly play a constructive role in maintaining international and regional peace, stability, development, and prosperity.

Sun Weidong and Tang Yongsheng had frank and in-depth exchanges of opinions on Sino-Indian exchanges and cooperation in the next phase and issues of common concern in the international region.

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Original source: https://www.toutiao.com/article/7516466100188709411/

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