Tesla enters Indian car market with Mumbai showroom
Elon Musk's firm used a media event on Tuesday to showcase its model Y cars, with prices starting at a relatively expensive 6 million rupees, or 70,000 dollars.
India is the world's third-largest car market, after China and the US, but electric vehicles account for only a small fraction. The Society of Indian Automobile Manufacturers says electric vehicle sales in fiscal 2024 were around 100,000 units.
Media reports say another showroom is expected to open in New Delhi by the end of July.
Tesla's move comes as the company faces slumping international sales. Many consumers have been boycotting the brand over Musk's political activities, while global competition is intensifying.
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Japan Times
17 hours ago
- Japan Times
Amid fossil fuel shift in U.S., hope emerges for India and Japan tie-up on solar
The latest data has made it official — India overtook Japan in 2023 to become the world's third-largest generator of solar energy. But at the International Solar Festival held at the Osaka Expo earlier this month, the focus wasn't on competition but rather how India and Japan can partner to grow solar capacity together. The gathering, the second of its kind, was organized by the International Solar Alliance (ISA) and brought together business leaders, government officials and other representatives from Japan, India and ISA member nations. The goal was to tell the story of solar and its potential as a driver of economic growth to visitors from around the world. 'We wanted to have the International Solar Festival in Osaka because one of the key challenges is on getting the private sector to look at new frontier solar technologies, which is linked to the question of how Japan and India can collaborate meaningfully,' said Ashish Khanna, the director-general of the ISA. The ISA, founded in 2015 at COP21 in Paris and based in India, has more than 100 member countries. Of those, India and Japan are two of the largest economies and are widely seen as leaders in global solar and solar-linked technologies. In addition to promoting tech to the private sector, the alliance also seeks to address another challenge — the lack of progress on expanding solar generation and production in developing countries, despite massive potential. Case in point, the most recent analysis from the International Renewable Energy Agency (IRENA) found that Asia, Europe and North America accounted for 90% of renewable capacity growth in 2024. 'Bridging the divide and closing the investment gap between countries and regions is critical,' said Francesco La Camera, IRENA's director-general, in an emailed statement. Expanding partnerships The ISF in Osaka was just the latest in a series of energy- and climate-related discussions between Japan and India. In 2022, the two countries launched a Clean Energy Partnership, with the goal of expanding cooperation on clean energy and energy security. India also joined the Japan-led Asia Energy Transition Initiative (AETI) in 2023. More recently, talks are ongoing about India becoming the next country eligible to receive funds under Japan's joint crediting mechanism (JCM), one of the largest state-led carbon credit and offset programs in the world. 'The JCM is expected to generate employment opportunities in both nations by fostering investments in low-carbon technologies,' said Shamkant Mirashi, an India-based sustainability consultant. 'By subsidizing these technologies, Japan can help equalize the cost of clean energy with conventional polluting sources.' The International Solar Alliance hosted a festival at the Osaka Expo, with collaboration in the key renewable energy source being the order of the day. | Nithin Coca Then, in 2024, the Japan Bank for International Cooperation (JBIC) provided funds to support Osaka Gas' joint investment in renewable energy projects with India's CleanMax. Despite this, there's still much more to be done, says Khanna, as overall bilateral investment and trade in solar have been limited. That, he hopes, will soon change. 'All partnerships take time,' Khanna said. 'We want to see the R&D and manufacturing ecosystem of Japan marrying with the entrepreneurial talent and market of India, a harmonization of alignment. How this translates into concrete business opportunities is something that we would like to facilitate more.' One challenge is that most major Japanese companies and financial institutions have yet to make large investments into solar technologies in India, which Khanna says is disappointing, as solar provides a safe, reliable investment opportunity. 'Japan has not exercised enough the financial muscle of its pension funds and institutional investors,' said Khanna. 'The time is now ... to create an ecosystem by which more concrete investment decisions are made.' Part of that reluctance could be the fact that major players in Japan and the government itself are not exactly all-in on solar energy. One criticism of Japan's approach, via entities such as AETI but also the Asia Zero Emissions Community (AZEC) has been a focus on pushing alternative Japanese technologies such as ammonia and biomass co-firing, hydrogen and carbon capture and storage. Critics say these alternatives are either not viable, short-term solutions or would have limited impact in reducing emissions. But Khanna did not necessarily see these efforts as distracting from solar. 'I think the answer for that is not either/or, but and,' said Khanna. 'Green hydrogen and ammonia have huge potential if the economics can be sorted out, and India can be a source of green hydrogen for Japan.' The elephants in the room Two notable countries were absent at the ISF — the United States and China. Despite their lack of engagement in the solar alliance, both countries, in their respective ways, cast a long shadow on the potential for Japan-India solar collaboration. While the U.S. has the second-highest solar capacity in the world and, under the Inflation Reduction Act passed during the administration of U.S. President Joe Biden, has made strides in solar and cleantech manufacturing, the world's largest economy is seeing dramatic cutbacks in global climate support this year. Employees carry solar panels at a plant in Aksu in China's Xinjiang Uyghur Autonomous Region in 2012. | Reuters The main driver is the administration of U.S. President Donald Trump, whose recent budget reconciliation law passed by Congress would reduce solar tax credits, part of a sudden shift away from support for renewable energy projects. 'It guts clean energy tax credits, kills American jobs and ships them overseas, raises electricity bills for families and small businesses, and weakens our energy independence,' said Andrew Reagan, president of the nonprofit Clean Energy for America, in a press release. Efforts set up under the Biden administration, like a partnership with Japan focused on expanding technology and supply chains for floating offshore wind, look unlikely to continue. Instead, amid trade tensions between the two countries, the U.S. has been pushing Japan to buy more of its liquefied natural gas. In fact, new trade tariffs also could limit the export of solar components and panels to the U.S., while the Trump administration prioritizes the domestic expansion of planet-warming fossil fuels such as coal and natural gas. China, meanwhile, has been praised for its rapid domestic expansion of solar, adding more capacity than the rest of the world combined in 2024. But the industry has numerous ethical concerns, including well-documented links to forced labor and human rights violations in the Uyghur homelands in the far-western region of Xinjiang, where many solar components are produced. 'There is a significant risk that that solar panels are being built with Uyghur forced labor, potentially across every stage: from quartz mining and polysilicon refinement to module construction and the development of the plant itself,' said Elfidar Iltebir, president of the nonprofit Uyghur American Association. A solar power plant in Solapur, India, in March. In 2024, the country overtook Japan to become the country with the third-largest solar capacity in the world. | Reuters Chinese companies, backed by state subsidies and access to cheap energy and labor, have been able to undercut solar manufacturing in Europe and Japan. Even India's attempts to expand domestic production have run into issues, and the country remains reliant on Chinese components. Exploring new technologies With those issues plaguing the industry in the world's top two economies, tie-ups between countries such as India and Japan become all the more important. For Khanna, one path forward might be developing alternatives to photovoltaics, the most common solar technology used today. 'If the industry is disrupted, that can itself become a source of diversification,' said Khanna. 'Perovskite, for example, doesn't need silica or ingots, and solid state batteries may not need lithium. The current supply chain can become a new supply chain if these technologies can be commercialized, and there is clearly a role for India, Japan and other countries to collaborate.' A model already exists, says Khanna. One of India's leading foreign collaborators is Shizuoka Prefecture-based Suzuki, which partnered with India's Maruti to build the country's largest automaker, and have even released an electric car together. 'What will be the Suzuki for solar in India,' asked Khanna. 'Suzuki transformed the automobile sector, by taking a bet. Who will take that bet, that private sector leadership, for solar?'
Asahi Shimbun
2 days ago
- Asahi Shimbun
India's Modi announces credit worth $565 million to the Maldives and launches free trade talks
Indian Prime Minister Narendra Modi, center, and Maldives President Mohamed Muizzu, center right, watch a traditional welcome dance upon Modi's arrival at the airport, in Male, Maldives, July 25. (Indian Prime Ministers Office via AP) COLOMBO, Sri Lanka--Indian Prime Minister Narendra Modi on Friday announced a $565-million line of credit to the Maldives during a visit to the Indian Ocean archipelago, as the two countries launched formal talks for a free-trade agreement. Modi is visiting the Maldives, known for its upmarket tourist resorts, to mark the 60th anniversary of its independence and diplomatic relations between the two countries. The announcement came during Modi's joint media statement with Maldives' President Mohamed Muizzu. The two-day visit is crucial to India's ambition to control the seas and shipping routes of the Indian Ocean in a race with its regional rival China. It also marks the further easing of diplomatic tensions between the two nations that followed the election of pro-China Muizzu in 2023. Regional powers India and China compete for influence in the archipelago nation, which is strategically located in the Indian Ocean. On Friday, Modi witnessed the exchange of agreements to cooperate in sectors such as fisheries, health, tourism and digital development. He also formally handed dozens of heavy vehicles to the Maldives' defense forces. 'India is Maldives' closest neighbor. Maldives holds an important place in both India's neighborhood- first policy and ocean vision," Modi said. 'India is also proud to be Maldives' most trusted friend.' The line of credit will be used for 'infrastructure and development projects in line with the priorities of the people of the Maldives,' he said. "India will continue to support Maldives in developing its defense capabilities. Peace, stability and prosperity in the Indian Ocean region is our common goal," he added. During Muizzu's visit to India last October, India announced financial support to the cash-strapped Maldives in the form of a $100-million treasury bills rollover and the countries signed a $400-million currency swap agreement. Tensions between India and the Maldives grew since Muizzu, who favored closer ties with China, was elected in 2023 after defeating India-friendly incumbent Ibrahim Mohamed Solih. Leading up to the election, Muizzu had promised to expel Indian soldiers deployed in the Maldives to help with humanitarian assistance. Last year New Delhi replaced dozens of its soldiers in the Maldives with civilian experts. Measure by Modi to promote tourism in India's Lakshadweep archipelago, off the southwestern coast of the Indian mainland, also sparked anger from Maldivians, who saw it as a move to lure Indian tourists away from their country. Indian celebrities then called for a tourism boycott to the Maldives. The dispute deepened when Muizzu visited China ahead of India in January last year, a move seen by New Delhi as a snub. On his return, Muizzu spelled out plans to rid his tiny nation of dependence on India for health facilities, medicines and import of staples. Relations started to improve after Muizzu attended Modi's swearing-in ceremony for a third five-year term. Muizzu has toned down his anti-Indian rhetoric, and official contacts with New Delhi have intensified as concerns grew about Maldives' economy. India has long been a critical provider of development assistance to the Maldives. Meanwhile, the Maldives joined China's Belt and Road Initiative in 2013 to build ports and highways and expand trade as well as China's influence across Asia, Africa, and Europe. Modi will attend the Maldives' 60th independence anniversary from being a British protectorate on Saturday.
The Diplomat
2 days ago
- The Diplomat
International Labor Standards: The Missing Link in China-US Trade Negotiations
The China-U.S. trade war is often reduced to a dispute over cheap exports, but the real fault line runs deeper. China has built a powerful industrial strategy on the backs of low-cost labor and state-backed incentives, successfully attracting advanced multinationals and bringing their technology and supply chain resources into the country. While the United States outsourced its basic manufacturing, China turned so-called 'low-end' jobs into a launchpad for dominating high-value industries. This strategy has worked. BYD, once a low-tier battery maker, is now a top global electric vehicle manufacturer, beating Tesla in worldwide EV sales. Apple, for its part, poured billions into China – not just in assembly lines, but in R&D. As journalist Peter McGee documented in 'Apple and the Transformation of Chinese Manufacturing,' Apple's strict quality and engineering standards forced Chinese suppliers to level up. What began as low-cost outsourcing became a sophisticated, self-reinforcing innovation engine. This has become a key driver of innovation and global competitiveness in China's manufacturing sector. As the Chinese government aligned its labor policies with the profit motives of U.S. corporations, Washington debated tariffs. All this while, companies continue to rely on China's cheap labor to meet shareholder demands. China, in turn, gained leverage: any disruption to this arrangement would threaten the survival of many global brands. This entanglement has become so tight that it indirectly but powerfully shapes U.S. policy toward China, through the commercial interests and logistical dependence of American companies operating in China. But there's a darker cost buried in the foundations of this success. For over two decades, China Labor Watch has uncovered systemic labor issues in the supply chains of major U.S. and global brands operating in China. These are not isolated incidents, but are structural features of a model that exploits rural migrant workers, tolerates weak enforcement of labor laws, and prohibits independent unions. Global companies continue to profit from it. This exploitation does not just serve short-term commercial interests. It underpins China's ambitious vision of the 'great rejuvenation of the Chinese nation' and advancing its global hegemonic strategy of technological dominance and leadership. Even as parts of manufacturing move to Southeast Asia, those operations remain closely tethered to Chinese supply chains. The low-cost advantage remains China's unshakable core. If the U.S. wants to reduce its dependency and rebalance trade on fairer terms, it cannot ignore the labor question. It must confront China's labor governance head-on – even if doing so challenges American business interests in the short term. The Chinese government, for all its claims in its Constitution and the Communist Party's charter that China is a 'socialist state' that is 'led by the working class,' has built its economic ascent on the backs of exploited workers. While it publicly touts its commitment to workers' well-being, it has never admitted to the systemic nature of labor violations. Instead, the party-state continues to sidestep the issue through an official narrative of 'striving for workers' well-being,' and blame is deflected to multinational corporations. Many Chinese citizens, including some government officials, genuinely believe that the CCP's system can improve workers' lives. The structural roots of labor exploitation, inherent in the party's governance and economic model, are obscured. Labor rights activism thus becomes a sore subject for the government. To them, it is not just about a call for better wages or working conditions, but a direct challenge to the CCP's self-image. It exposes the ideological gulf between its promises and the lived experience of Chinese workers. If party leaders deny the existence of labor exploitation, they are telling an outright lie that will anger many workers; if they address the issue, it legitimizes that reality is at odds with the CCP's charter. This is precisely why labor advocates are treated with suspicion and often repression – but also some degree of caution. During the 2015 '709 Crackdown,' China jailed dozens of human rights lawyers, but took a softer approach with labor activists, quietly releasing them or assigning them jobs after detention to avoid international attention further escalating the issue. The goal was clear: to suppress attention and not provoke an international firestorm. A similar pattern played out in 2025, when Brazil sued BYD for alleged forced labor. Instead of lashing out at international critics, as it often does in response to human rights issues, China responded discreetly and promised an investigation. These examples reflect the nuance and sensitivity that the government applies to labor issues, as compared to human rights issues that it often rebuts. This different approach underscores the potential for labor issues to compel government action and, in turn, how international labor standards can be used as a tool for change. In other words, for the Chinese government, labor conditions resonate where abstract human rights appeals do not. From factory workers to office employees, the majority of China's workforce faces long hours, low wages, and little social protection. Labor violations aren't theoretical; they are everyday realities that could fuel domestic pressure and policy reform if exposed. Tools to address these problems already exist. In the United States, the Uyghur Forced Labor Prevention Act (UFLPA) and Section 307 of the Tariff Act have led to meaningful enforcement actions, even if many Uyghur workers are rarely found in primary factories supplying to the U.S. In the future, as additions to the UFLPA entity list are expected to slow, U.S. enforcement could shift toward broader supply chain interventions through the Withhold Release Orders (WROs), further expanding to address forced labor issues in supply chains, using enforcement to promote fairer labor standards. Yet despite the tools at Washington's disposal, labor concerns remain sidelined in mainstream trade discussions, drowned out by debates over tariffs, trade deficits, and subsidies. These traditional tools have struggled to move the needle on Chinese economic policy, which is largely built upon China's persistent low labor cost advantage. Labor, by contrast, is a pressure point the Chinese government is less prepared to resist, precisely because it implicates both the CCP's legitimacy and its economic model. Labor issues directly affect the immediate interests of the Chinese people, which concerns the government, and international labor standards can thus serve as an effective mechanism to expose the deeply rooted structural flaws in China's governance model. This is the moment for the United States and its allies in Europe to unite around labor standards as a strategic pillar of trade policy. As China-EU tensions continue to simmer, a coordinated, transatlantic approach, through shared standards, trade mechanisms, and enforcement frameworks, could significantly increase leverage over China's labor practices. This strategy not only advances sustainable global supply chains but also balances immediate commercial interests with long-term labor equity, benefiting workers in both the United States and China. Yes, there will be obstacles: political division among allies, corporate resistance, and China's likely counterattacks. But the stakes are too high to ignore. Fair labor standards not only strengthen global supply chains; they offer a pathway to a more just global economy, one where competitiveness does not rely on exploitation. Reshaping the rules of global trade will require more than rhetoric. It will require placing workers – American, Chinese, and others – at the center of policy. And that begins with recognizing that labor is not a side issue. It is the issue.
