China's unease with Tesla's potential expansion in India stems from doubts about the Indian market's readiness for Tesla's high-end electric cars. The apprehension is highlighted in reports from The Global Times, stating that India might not be prepared enough for a company like Tesla to thrive in its market environment. The concerns primarily revolve around the challenges India faces, such as the limited infrastructure for electric vehicles and the ongoing power shortages that could hamper the growth of EVs.
Elon Musk's interest in establishing an electric vehicle plant in India and engaging with the government to advance projects like the Starlink initiative has raised eyebrows in China. The Chinese authorities, as per reports, are skeptical of Tesla's success given the country's slow progress in developing a robust EV ecosystem. The concerns are further fueled by India's emphasis on enhancing its domestic production of core EV components like lithium-ion batteries to support Tesla's manufacturing operations.
While Tesla operates global factories in prominent locations like California, China, Texas, and Germany, the potential entry into India poses unique challenges due to the country's evolving market dynamics. It's noted that the Indian government's recent approval of a new electric vehicle policy, catering to Musk's requests with provisions for local manufacturing incentives, signals a shift towards embracing advanced EV technology. However, the skepticism from China underscores the complexity of Tesla's anticipated foray into a market like India where infrastructure and regulatory challenges persist.