This is a continuation of the post Dynamic India: Manufacturing and Marketing. The first post described the vehicle market changes due to the introduction and transition to EVs. While the size of China’s market and its buying power have helped shape that transition, it’s held traditional ICE manufacturers at bay. India looks to be a similarly sized market that will continue to grow for the foreseeable future.
Tesla Motors has had huge success by manufacturing in China. High tariffs (up to 100%) have kept Tesla from becoming a competitor in the Indian market. The possible advantages of an Indian-based manufacturing plant are highly attractive as exports from Indian manufacturing were only 600,000 units in 2022. A combination of a huge domestic Indian market and potential exports to other Asian and African markets is an incentive for global enterprises to look more deeply at an Indian capacity.
India is also racing to use the advantages of a Dynamic India against other jurisdictions. Vietnam (VinFast) is beginning to build a manufacturing capacity. Thailand has been selected by some global manufacturers as a ‘near-China’ low-cost location. Indonesia is using the rich deposits of nickel and minerals to lure higher-level processing, battery and metals production, and possibly vehicle brands to manufacture there. The competition places new demands on the Indian commerce landscape to compete in global opportunities.
India desires to compete for global vehicle manufacturing and build a sustainable industrial base using the advantages of a Dynamic India. The success of “Make in India” luring Apple to expand to serve the domestic and export markets is a strong policy narrative for government and industry. The disruption of global vehicle markets for software defined product platforms is the opportunity for building a long term success story for Dynamic India.
Dynamic India stands to gain share and attention as it looks to be an easier market to play for outside manufacturers. If you’d like to see more articles that talk about Dynamic India’s unique capabilities, you can see more posts at www.ekalore.com/india-business
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