Apple and Tesla Now Target 2022 to Strengthen Manufacturing History in India | Business
NEW DELHI – The two major investments in India this year – Tesla and Apple – which were to elevate the country as a brand on the world map and end reliance on China-led investments in the sectors technology and automotive, have been somewhat delayed due to the pandemic and the global chip shortage. Nonetheless, the two giants are now aiming to rewrite their manufacturing history in India next year as Covid slows down.
Elon Musk and Tim Cook had both announced massive entry into the country. Musk wanted his electric cars to run on national roads (despite import duty issues) while Cook announced the opening of the first branded retail store (in Mumbai), along with the idea of assemble / manufacture more Apple products in the country.
However, the second wave of Covid-19 and a severe shortage of automotive semiconductors somewhat hampered their plans for the year.
According to Soumen Mandal, Research Analyst (IoT, Automotive & Device Ecosystem) at Counterpoint Research, India is set to become one of the largest markets for electric vehicles soon and Tesla is aware of it.
“None of the major automakers want to overlook the opportunity to gain a share of the Indian market. Tesla is no exception in this case. higher profits if they set up a local manufacturing or assembly plant, ”Mandal told IANS.
The government wants Tesla to start a local manufacturing or assembly plant before it gets import tax relief.
“Therefore, the desire to gain more profit as well as the desire to gain market share in one of the future largest automotive markets brings Tesla to India,” he added.
This shortage of electronic chips has seriously affected the automotive industry, which is increasingly a large consumer of electronic chips.
While most automakers predict this chip shortage will continue until 2023, Tesla CEO Elon Musk says things will turn positive from 2022.
“Almost all automakers are currently suffering from the current semiconductor shortage. While most of the automakers like Stellantis, Volkswagen, Toyota, BMW, Ford and others have significantly cut production due to the current chip crisis, Tesla has not been significantly affected. Mandal said.
The Indian passenger car market is mainly dominated by cars priced below Rs 10 lakh, while the current Tesla Model 3 costs (around Rs 29 lakh without import and other taxes) put the car in the premium segment and the premium market share. segment in the country was only 7 percent in 2020.
At present, India is in the global spotlight due to the production incentive program. Under the scheme, foreign manufacturers can only acquire resources at very minimal cost if they set up a manufacturing or assembly plant locally.
The PLI program has been very generous towards electric vehicles and its components like batteries, as India is already behind in the adoption of electric vehicles and wants to put a significant number of electric vehicles on the road by 2030.
The pandemic has also forced the iPhone maker to open its own offline store to fans in India this year. He opened his own online store ahead of the holiday season, which was a huge success.
“The retail store continues to be a key part of Apple’s growth in India. It will guide the availability, accessibility and affordability of Apple products in the country, ”said Prabhu Ram, Head of Industry Intelligence Group, CyberMedia Research.
Consumer demand for the new iPhone 13 series is robust in the country. The iPhone 13 series, for which pre-orders opened in India last week, received a record response like last year from fans across the country.
“However, the current supply chain dynamics are causing some constraints for Apple Watch as well as iPhones. We believe Apple is slightly better positioned to increase its supplies in the coming quarters and meet the strong demand,” Ram told IANS.