Ramkumar Natarajan
Narendra Modi visited Tesla’s factory in California, in 2015 and invited Elon Musk to set up a factory in India. A year later Nitin Gadkari met Musk and offered free land near ports.
But Tesla has reached an agreement with China to set up an electric car factory in Shanghai sometime in 2017, even as India continued to frx its EV (Electric Vehicles) policy. Now 1000 Tesla cars in a week are rolling out of the factory in Shanghai.
China made a great offer, a lucrative incentive to spur Elon Musk’s Tesla Inc. to decide on building its first automobile factory outside of the US in Shanghai. The offer was that Tesla could build a wholly owned factory in Shanghai`s free-trade zone.


The incentive is a special exemption from Chinese manufacturing laws that require foreign automakers to set up joint ventures with local partners and thus splitting profits and sharing some technology, though they also avoid import tariffs.
For Tesla it was just the start of what will be a growing investment in China. It intends to continue increasing investment in China, making the Model 3 and the Model Y, and future models also in China. Tesla also has plans to establish a China design and engineering center to actually design an original car in China for worldwide consumption.
India, widely seen as a potential rival to China’s economic dominance, lost out to China. Why? India, a late starter in electric-vehicles, was still formulating policies which would help it achieve its obxtive of having an all-electric fleet of vehicles on the roads by 2030.

对于特斯拉来说,这只是在中国不断增加投资的开始。它打算继续增加在中国的投资,在中国制造Model 3和Model Y,以及未来的型号。特斯拉还计划在中国建立一个设计和工程中心,为全球消费者设计一款原创的中国汽车。
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China is regarded by foreign companies as a far more attractive market owing to the sheer scale of its industries and a niche affluent population. Moreover, China’s electric-vehicle market is already the world’s largest and is expected to continue growing. China has already made it mandatory that all automakers should produce a specific percentage of electric vehicles from 2019.
The electric vehicles before the entry of Tesla have a captive 5 per cent of China’s car sales and now Tesla will have to expand its sales beyond that 5 per cent in addition to capturing monopoly in that 5 per cent. To be sure, there is an affluent segment of China’s massive population that can afford Tesla cars.
Electric car sales in China increased at a compound annual growth rate of 179.4 per cent between 2013 and 2016 to 329,000 units, equivalent to 1.4 per cent of total sales of fossil-fuel run cars, according to Bank of America Merrill Lynch.


It, therefore, offers a much better opportunity for Tesla, when it looks to expand its global footprint.
Many have pointed about the irrelevance of the above statement, as Tesla has given open source to their patents. I stand corrected. Thank you friends.
In 2014 itself Musk said that “there was a wall of Tesla patents in the lobby of our Palo Alto headquarters. That is no longer the case. They have been removed, in the spirit of the open source movement, for the advancement of electric vehicle technology.”