Modi Government is using the tax laws to hit foreign
investors under the belt, particularly the Chinese. More than 2,700
foreign entities have left India, totally disillusioned.
It is
no use challenging, because you are in their territory and doing
business there. They have all the say, including changing the laws. Let
this be a lesson to all Chinese investors. Stay as far away as possible
from India. Bangladesh looks more promising, so does Vietnam. Both are
rising stars in their own rights, with conducive environments for
foreign investments. And there are the vast potential of Africa opening
up. India had, over the decades garnered a notorious name for not
honouring their words.
Ever wonder why foreign companies labelled
India 'The graveyard of foreign investment'? The victims include Ford,
Harley Davidson, Carrefour, Henkel, Daiichi Sankyo, with many others,
and lately Wistron and Foxconn. Foxconn is said to be still intent on
investing in India, but what is the amount realistically? US$194 million
compared to their initial US$19.4 billion joint venture with Vedenta.
Just a drop in the ocean and the Indians are jubilant and counterarguing
that Foxconn loves to invest in India.
Never forget the saying that 'fools rush in where angels fear to tread'.
Anonymous 1
Chinese carmaker BYD faces Indian tax investigation
Chinese
automaker BYD faces an ongoing Indian investigation over allegations
that it paid too little tax on imported parts for cars it assembles and
sells in the country, two sources with direct knowledge of the matter
said.
India's Directorate of Revenue Intelligence (DRI) has
alleged that China's largest electric vehicle (EV) maker, whose
expansion plans have been hit by fractious relations between New Delhi
and Beijing, underpaid tax of 730 million rupees ($9 million).
Although
BYD has deposited this sum after the DRI's preliminary findings, the
source added, the investigation is ongoing and could lead to additional
tax charges and penalties. The DRI is yet to issue a final notice to
BYD, which can challenge the findings.
BYD is facing heightened
scrutiny from New Delhi over a $1 billion proposal to build cars
locally, amid tighter rules on foreign investment from bordering
nations, including China. BYD told its Indian joint venture partner it
had considered dropping the investment plans.
Smartphone maker
Xiaomi Corp has been accused of illegal remittances to foreign entities
in the name of royalties, allegations it has denied and challenged in
court.
Anonymous 2
Indian dirty business practices have been a major concern for foreign investors, particularly Chinese companies. According to data from the Indian government, 2,783 foreign companies and their subsidiaries ceased operations in India between 2014 and November 2021, including notable ones such as Cairn Energy, Holcim, Daiichi Sankyo, Carrefour, Henkel, Harley Davidson and Ford, media reports said.
ReplyDeleteA senior industry insider who has been in India for years said India's approach is not to solidly build from the foundation and welcome foreign investment, but rather seek shortcuts and its policies are not really friendly to foreign businesses.
"Once they believe they can do it themselves, they suppress foreign-invested enterprises, leading to increased caution from foreign companies," the insider said.
India needs to build up it foundation for investment first, not destroying those foundation necessary to become the 'factory of the world'. Using underhand tactics to undermine foreign investors is not going to help.
ReplyDeleteIndians will not like comments like this. The cannot handle the truth. They claim comments like this are financed by the CCP. They only can live in denial and fantasy, burying heads in the sand, like you know who.
Let the world move on.
Foxconn is still intent on expanding in India with a US$600 million investment in Karnataka. It is basically throwing good money after bad! Apple and Foxconn's problems in India was all about being able to find skilled workers for its ventures in India and how are they going to overcome this is a mystery?
ReplyDeleteTSMC already faced skilled workers problem in Arizona, having to move skilled workers from its Taiwan base, only to find itself trying to solve the issue by putting a square peg into a round hole. Taiwanese and USA workers are on a different planet in working attitudes. Foxconn could do the same by transfering skilled workers from Taiwan or China, but would the mainland Chinese workers want to move to India? Moreover, the work attitudes of Chinese and Indian workers will not click. One is hardworking, while the other is laid back and slow moving like the Indian Government.
In any case, moving big back to China for Foxconn is not going to be a welcoming move by the Mainlanders now, and perhaps not a face saving one as well. Others have taken over the void. Luxshare Precision Industry Co. Ltd, a Chinese company has already been appointed as Apple's iPhone assembler in China. Chinese skilled workers of Foxconn who were laid off earlier have probably been absorbed elsewhere by now and will not be coming back, knowing the uncertainties. New Chinese start ups with skilled workers are probably waiting by the sidelines to fill the void left by Foxconn.
Mahindra's EV unit raises funds from Temasek at $9.8 bln valuation
ReplyDeleteBENGALURU, Aug 3 (Reuters) - Mahindra and Mahindra (MAHM.NS) has raised $145 million from Temasek for its electric vehicle unit at a valuation of up to 805.8 billion rupees ($9.8 billion), the latest fundraising by the Indian automaker as it looks to ramp up EV sales.
Temasek will take up to a 3% stake in the company which last year raised up to $250 million from British International Investments (BII) at a valuation of as much as $9.1 billion.
The automaker is aggressively trying to lift the share of its electric SUVs in a market that is dominated by larger rival Tata Motors (TAMO.NS), as the government pushes to grow EV sales to 30% by 2030 from less than 2% today.
Mahindra said it expects electric models to make up between 20% and 30% of its total SUV sales by March 2027.
"Temasek's investment is a step forward, as we execute our strategy towards future leadership in electric SUVs," Mahindra CEO Anish Shah said in a press release.
India's EV market is small but growing, attracting interest from global players including Tesla.
The world's biggest EV maker is in talks with the government to invest in a potential factory that would build low-cost EVs, targeting a price of around $24,000. Analysts say this could pose stiff competition for local automakers.
Rival Tata Motors in 2021 raised $1 billion from TPG's Rise Climate Fund at a valuation of about $9.1 billion.
Mahindra had been in talks with global investors, including green funds and private equity players, for nearly a year to raise between $250 million and $500 million to accelerate its EV plans, Reuters has reported.
Mahindra shares fell as much as 2.5% after the deal and were last trading down 1.2%.