A big changes going to happen in the Automobile/EV industry and space sector of India with entering of Elon Musk in India.
The Indian government this week amended its foreign direct investment (FDI) policy in the space sector to attract investors in the satellite manufacturing and launch vehicles segments.
Musk was planned to land in India for a visit on April 21-22 to meet with Prime Minister Narendra Modi as well as executives of Indian space companies, but he postpones India trip; to visit later this year, the Indian government this week amended its foreign direct investment (FDI) policy in the space sector to attract investors in the satellite manufacturing and launch vehicles segments.
The American billionaire is well-known for his ambitious—and audacious—space exploration endevours through his company SpaceX and his desire to establish a human colony on the Red Planet.
Now, another one of his space-related businesses may get a shot in the arm from India with the government close to finalising approvals for Musk’s satellite internet project Starlink.
The government has allowed up to 74% FDI for satellite manufacturing and operation, and satellite data products under the automatic route. FDI beyond 74% for these activities will require prior government approval. Previously, India allowed FDI for satellite operations through the government approval route only.
The government has also permitted FDI up to 49% for launch vehicles and associated systems, creation of spaceports for launching and receiving spacecraft under the automatic route. Again, FDI beyond 49% will require government permission. Besides, the government has allowed 100% FDI for manufacturing of components and systems or sub- systems for satellites, ground segment and user segment without prior approval.
Musk’s association with India is likely to go beyond space, into the fast-growing sector of electric vehicles where his company Tesla dominates the world and is now about to enter the South Asian nation.
Musk, who is also CEO of electric vehicle maker Tesla, could announce a $2-3 billon investment in setting up a manufacturing unit in India during his visit, if all goes well.
Tesla has expressed interest in entering the Indian market over the past few years, but was reluctant due to steep import duties. However, with the government recently easing its EV policy, it is now presumed that Tesla will finally make its much-awaited India entry. The new policy reduced import tariffs on EVs priced above $35,000, provided the manufacturer invests at least $500 million and sets up a factory within three years.
But Tesla is not the only carmaker eyeing India’s fast-growing EV market. China’s MG Motor and BYD have already established a presence in India. Vietnam-based VinFast has announced plans to set up a Rs 16,000 crore EV manufacturing plant in Tamil Nadu. And now, Tata Motors is doubling down on India.
No comments:
Post a Comment