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India Today
8 hours ago
- Automotive
- India Today
Tesla is finally in India. But can it go the distance?
After years of speculation, lobbying and negotiation, Elon Musk's Tesla has formally entered the Indian market. The company has opened its first showroom in Mumbai's upscale Bandra Kurla Complex and started bookings for the Model Y SUV. A second experience centre in Delhi is expected to follow soon, according to long-anticipated debut, however, brings with it more questions than answers about Tesla's long-term ambitions in the Model Y will be sold as a completely built import, with the base rear-wheel-drive variant priced at Rs 60 lakh and the long-range version at Rs 68 lakh. These vehicles are being shipped from Tesla's Gigafactory in Shanghai, its main export hub for Asia and Europe. The Indian price tag makes the Model Y one of the most expensive Teslas in the world, substantially higher than the $44,990 starting price in the United States or the 263,500 yuan cost in China. The primary reason is India's steep import duties, which can exceed 100% for fully assembled recently overtook Japan to become the world's third-largest auto market. But Tesla's entry comes in the luxury EV segment, which remains a sliver of the overall landscape. Luxury electric vehicles currently account for just 4-5% of total car sales in strategy, for now, seems cautious. The company has imported only six Model Y units along with Supercharger equipment and accessories valued at about $1 million, according to import data reviewed by Maxwell, Global Strategy Lead at VT Markets, believes the initial splash may be underwhelming. 'Tesla is currently too expensive for most of the Indian consumers, despite a strong brand presence already existing within the country,' he said. 'The immediate impact of the launch of Tesla's Model Y may be limited, but the longer-term strategic benefits may boost its growth trajectory in the years to come.'PRICING CHALLENGEThe pricing challenge is only one part of the equation. Tesla also faces a complex policy environment. India's import tariffs on fully built EVs are among the highest globally, posing a major obstacle to competitive pricing.A trade deal between India and the United States is currently under discussion. Reports in Business Standard say Washington is pushing for lower tariffs on American electric vehicles as part of a broader plan to double bilateral trade by 2030. However, geopolitical uncertainty looms the possibility of Donald Trump returning to the White House—and his well-documented skepticism toward EVs and climate policy—the likelihood of aggressive US lobbying on Tesla's behalf could be limited. Musk's own uneasy relationship with Trump adds another layer of unpredictability to the puts Tesla at a strategic crossroads. The company can wait for a breakthrough in tariff negotiations or make a bold move to manufacture new EV policy offers a compromise. It promises reduced import duties of just 15% for companies that invest $500 million and set up a domestic factory. But the policy also mandates that firms must source 50% of their components locally within five years—a tall order for a company whose supply chains are deeply sees this as Tesla's best shot at a sustainable future in India. 'India is a fast-growing but untapped market in the EV sector, with EV adoption below 2% even though it is the third-largest auto market globally,' he said. 'The Indian government has been in talks to offer tax benefits and subsidies to manufacture locally, offering Tesla a great opportunity to source and manufacture locally, boosting margins and making vehicles more affordable.'INTENSE COMPETITIONTime, however, is not on Tesla's side. While the company enjoys strong brand recognition, rivals are moving automakers such as BMW, Mercedes-Benz and Audi already have electric models on Indian roads. They come with existing service networks and premium brand most formidable challenger may be BYD, the Chinese EV giant that recently overtook it in global sales. BYD has launched the Sealion 7 and other relatively affordable models in India, but its expansion is hampered by stricter foreign investment rules for Chinese companies. Any major manufacturing ambitions BYD has in India would likely require a joint venture and a green light from wary policymakers—giving Tesla a temporary NEXT FOR TESLA IN INDIA?The risk for Tesla is that it may remain a luxury outlier. If it delays manufacturing or fails to localise meaningfully, the Model Y will likely stay confined to a few metro cities, catering to a narrow band of affluent consumers. In contrast, homegrown players like Tata Motors and Mahindra are scaling up aggressively, already offering EVs that appeal to the broader middle India chapter has begun. But whether it becomes a dominant player or just a boutique brand depends on how it navigates India's complex mix of policy, politics and opportunity is enormous—a vast and largely untapped market, rising environmental consciousness, and government incentives all point to growth. But success will demand more than a showroom. Without a deeper commitment to the Indian market, Tesla risks stalling just after crossing the starting line.- EndsMust Watch
Courier-Mail
12 hours ago
- Automotive
- Courier-Mail
BYD, Chery caught in $185m Chinese EV subsidy scandal
Don't miss out on the headlines from Motoring. Followed categories will be added to My News. Two of China's largest electric vehicle manufacturers, BYD and Chery, have been caught up in a multimillion-dollar subsidy scandal after a government audit revealed they improperly claimed more than $80 million in taxpayer funds. China's Ministry of Industry and Information Technology, shows that from 2016 to 2020, the automakers received public subsidies for more than 13,000 vehicles that failed to meet official requirements. Preliminary results published late last month show Chery had applied for approximately 240 million yuan (approximately AUD $51 million) in funding for 8,760 electric and hybrid vehicles that did not qualify. MORE: EV boss calls for end to ute incentives BYD electric cars waiting to be loaded to the car carrier BYD "Shenzhen", which will sail to Brazil from the Taicang Port in Suzhou, in China's eastern Jiangsu province. (Photo by AFP) / China OUT BYD had 4,973,143 million yuan (approximately AUD $30 million). Both car brands accounted for close to 60 per cent of the total improper claims. The audit assessed more than 75,000 vehicles from more than a dozen automakers. In total, more than 21,700 vehicles across multiple brands were deemed ineligible accounting for 864.9 million yuan (approximately AUD $185 million) in questionable subsidies. No formal allegations of fraud have been made but the audit did flag issues such as missing supporting documents and failure to meet minimum mileage thresholds required under the phased out EV incentive scheme. Under the subsidy program, the Chinese government had previously offered generous cash rebates of up to 60,000 yuan (AUD $8400) per electric or plug-in hybrid vehicle, paid directly to manufacturers, who were supposed to pass on the subsidy to their customers as a discount on the purchase price. MORE: Jet on wheels delivers wild luxury Chery had applied for approximately 240 million yuan (approximately AUD $51 million) in funding for 8,760 electric and hybrid vehicles that did not qualify. Picture: Supplied However, this did not always happen correctly. Regulators were particularly sceptical of dealer practices and sales strategies, calling out 'zero kilometre used cars', brand new vehicles registered to dealers and resold as used stock to inflate sales figures. The Ministry has not confirmed whether any of the funds flagged in the audit have been repaired or deducted from future payments. Chery denied the allegations and has said it acted transparently and said the audit only involved subsidy applications that had not yet been paid out. BYD has not yet commented. Originally published as BYD, Chery caught in $185m Chinese EV subsidy scandal
Herald Sun
14 hours ago
- Automotive
- Herald Sun
BYD, Chery caught in $185m Chinese EV subsidy scandal
Don't miss out on the headlines from Motoring. Followed categories will be added to My News. Two of China's largest electric vehicle manufacturers, BYD and Chery, have been caught up in a multimillion-dollar subsidy scandal after a government audit revealed they improperly claimed more than $80 million in taxpayer funds. China's Ministry of Industry and Information Technology, shows that from 2016 to 2020, the automakers received public subsidies for more than 13,000 vehicles that failed to meet official requirements. Preliminary results published late last month show Chery had applied for approximately 240 million yuan (approximately AUD $51 million) in funding for 8,760 electric and hybrid vehicles that did not qualify. MORE: EV boss calls for end to ute incentives BYD electric cars waiting to be loaded to the car carrier BYD "Shenzhen", which will sail to Brazil from the Taicang Port in Suzhou, in China's eastern Jiangsu province. (Photo by AFP) / China OUT BYD had 4,973,143 million yuan (approximately AUD $30 million). Both car brands accounted for close to 60 per cent of the total improper claims. The audit assessed more than 75,000 vehicles from more than a dozen automakers. In total, more than 21,700 vehicles across multiple brands were deemed ineligible accounting for 864.9 million yuan (approximately AUD $185 million) in questionable subsidies. No formal allegations of fraud have been made but the audit did flag issues such as missing supporting documents and failure to meet minimum mileage thresholds required under the phased out EV incentive scheme. Under the subsidy program, the Chinese government had previously offered generous cash rebates of up to 60,000 yuan (AUD $8400) per electric or plug-in hybrid vehicle, paid directly to manufacturers, who were supposed to pass on the subsidy to their customers as a discount on the purchase price. MORE: Jet on wheels delivers wild luxury Chery had applied for approximately 240 million yuan (approximately AUD $51 million) in funding for 8,760 electric and hybrid vehicles that did not qualify. Picture: Supplied However, this did not always happen correctly. Regulators were particularly sceptical of dealer practices and sales strategies, calling out 'zero kilometre used cars', brand new vehicles registered to dealers and resold as used stock to inflate sales figures. The Ministry has not confirmed whether any of the funds flagged in the audit have been repaired or deducted from future payments. Chery denied the allegations and has said it acted transparently and said the audit only involved subsidy applications that had not yet been paid out. BYD has not yet commented. Originally published as BYD, Chery caught in $185m Chinese EV subsidy scandal
Business Times
15 hours ago
- Business
- Business Times
Chinese convertible bonds rally to decade-high on surging demand
[BEIJING] Convertible bonds have emerged as one of the most popular asset classes in China this year, trouncing the performance of local stocks and fixed income. The CSI convertible bond index has rallied about 8 per cent in 2025 to trade near a decade high. That easily beats the stock benchmark's 2.1 per cent advance so far this year, while Chinese government bonds have returned just 0.9 per cent in local-currency terms. Investor appetite for the hybrid notes has surged, thanks to easing credit rating risks on the securities and an equity market rebound. A share price rally in banks and small-caps, the sectors that dominate the convertible bond index, has further buoyed demand for such securities that can be exchanged for equity. 'Non-convertible bond investors can no longer overlook the standout performance of this asset class,' said Wesley Chen, head of fixed income at Ubp Investment Management Shanghai. 'For foreign funds looking to build positions in China but lacking strong conviction in the equity market, these bonds offer a compelling alternative, providing exposure to equity upside with lower volatility and drawdowns.' Convertibles typically offer investors lower yields than conventional debt, but provide an option to exchange into shares if certain conditions are met. The recent economic backdrop has made such notes appealing to both issuers, who can raise funds at a lower cost, and buyers, who expect stock momentum to continue. Two exchange-traded funds tracking the CSI convertible bond index saw the biggest monthly inflow last month since January, Bloomberg-compiled data show. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up A drop in supply from early redemptions and maturities has also supported prices. The outstanding amount of such securities in China fell by over 55 billion yuan (S$9.9 billion) in the June quarter to dip below 650 billion yuan, according to Sinolink Securities. That compares with over 730 billion yuan at the end of 2024. The supply squeeze has been particularly pronounced in banking convertibles, long favoured by investors for their low volatility, strong credit ratings and better liquidity. The surge in the sector's shares has helped fuel early redemptions. The CSI 300 Bank Index has gained 17 per cent this year. To some, the rally presents an opportune time to realise gains. Convertible bond investors should 'consider locking in some profits', given uncertainties facing the stock market from tariff negotiations and earnings, Ruizhe Yin, a Sinolink Securities analyst, wrote in a note. Yet the tight supply will likely continue to support the price of convertibles. There has been no new bank convertible issuance onshore since late 2022, according to data compiled by Bloomberg. Shanghai Pudong Development Bank's 50 billion yuan note, which matures in October, will likely exacerbate the situation. 'Market appetite is strong, but supply is tight,' said Wei Li, head of multi-asset investments at BNP Paribas Securities (China). 'Chinese bank convertibles are trading like premium scarcity plays, yet visibility on future issuance remains low. That's keeping valuations elevated.' BLOOMBERG
Mint
15 hours ago
- Business
- Mint
Chinese Convertible Bonds Rally to Decade-High on Surging Demand
(Bloomberg) -- Convertible bonds have emerged as one of the most popular asset classes in China this year, trouncing the performance of local stocks and fixed income. The CSI convertible bond index has rallied about 8% in 2025 to trade near a decade high. That easily beats the stock benchmark's 2.1% advance so far this year, while Chinese government bonds have returned just 0.9% in local-currency terms. Investor appetite for the hybrid notes has surged, thanks to easing credit rating risks on the securities and an equity market rebound. A share price rally in banks and small-caps — the sectors that dominate the convertible bond index — has further buoyed demand for such securities that can be exchanged for equity. 'Non-convertible bond investors can no longer overlook the standout performance of this asset class,' said Wesley Chen, head of fixed income at Ubp Investment Management Shanghai Ltd. 'For foreign funds looking to build positions in China but lacking strong conviction in the equity market, these bonds offer a compelling alternative, providing exposure to equity upside with lower volatility and drawdowns.' Convertibles typically offer investors lower yields than conventional debt, but provide an option to exchange into shares if certain conditions are met. The recent economic backdrop has made such notes appealing to both issuers — who can raise funds at a lower cost — and buyers, who expect stock momentum to continue. Two exchanged-traded funds tracking the CSI convertible bond index saw the biggest monthly inflow last month since January, Bloomberg-compiled data show. A drop in supply from early redemptions and maturities has also supported prices. The outstanding amount of such securities in China fell by over 55 billion in yuan ($7.7 billion) in the June quarter to dip below 650 billion yuan, according to Sinolink Securities Co. That compares with over 730 billion yuan at the end of 2024. The supply squeeze has been particularly pronounced in banking convertibles, long favored by investors for their low volatility, strong credit ratings and better liquidity. The surge in the sector's shares has helped fuel early redemptions. The CSI 300 Bank Index has gained 17% this year. To some, the rally presents an opportune time to realize gains. Convertible bond investors should 'consider locking in some profits,' given uncertainties facing the stock market from tariff negotiations and earnings, Ruizhe Yin, a Sinolink Securities analyst, wrote in a note. Yet the tight supply will likely continue to support the price of convertibles. There has been no new bank convertible issuance onshore since late 2022, according to data complied by Bloomberg. Shanghai Pudong Development Bank Co.'s 50 billion yuan note, which matures in October, will likely exacerbate the situation. 'Market appetite is strong, but supply is tight,' said Wei Li, head of multi-asset investments at BNP Paribas Securities (China). 'Chinese bank convertibles are trading like premium scarcity plays, yet visibility on future issuance remains low. That's keeping valuations elevated.' More stories like this are available on
