China Reacts to Elon Musk’s Visit to India and Tesla’s Manufacturing Plans
Elon Musk, CEO of the electric car manufacturer Tesla, will visit India on the 22nd of this month. He is set to meet with India’s Prime Minister, Narendra Modi. During his visit, Musk is expected to reveal Tesla’s plans to establish operations in India by building a manufacturing unit.
Tesla personnel are now visiting various Indian states to examine potential locations for this facility. Tesla aims to invest between $2 and $3 billion in the building of this factory.
Rumors suggest that Tesla may form a joint venture with Reliance Industries, a big Indian corporation owned by Mukesh Ambani, to create this factory. Both companies are exploring forging a cooperation.
However, China is not happy with Elon Musk’s visit to India and Tesla’s ambitions to enter the Indian market. China’s reaction has been seen as shocking. The Chinese government has warned Tesla that it should be concerned about its decision to build a factory in India, citing a lack of supply chain, infrastructure, experienced engineers and workers, and a bad business environment in India.
This reaction from China is seen as an insecurity towards India’s growing economy and attractiveness for foreign investments. It is notable because Tesla is a leader in the electric vehicle industry, and its direct competition is BYD, a Chinese manufacturer. Interestingly, BYD attempted to establish a facility in India, but India rejected the request.
