India’s Tesla incentive rollout; Apple’s iPhone tariffs dilemma

India may establish an on-demand EV manufacturing facility under the upcoming Scheme to Promote Manufacturing of Electric Passenger Cars in India (SMEC) guidelines. This and more in today’s ETtech Top 5.

Also in the letter:
■ Starlink closes in on India greenlight
■ No antitrust respite for Amazon, Meta
■ Indian chip boom draws chemical firms

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India might establish an on-demand facility for electric vehicle manufacturing under the upcoming guidelines for the SMEC incentive, which was announced in March of last year and is yet to be implemented.

Driving the news:

• The comprehensive rules for the scheme are anticipated next month, with the window to apply potentially remaining open for an extended duration, officials told us.
• This would enable foreign electric vehicle manufacturers like Tesla to test the market before committing investments.
• According to the officials, the window for applying for incentives under SMEC can be opened for 120 days or more.

Tesla’s India entry:

• The Elon Musk-led company is seeking showroom space and is looking to hire staff to sell its vehicles in India.
• This scheme will allow Tesla to understand the demand for its products in India before making manufacturing investments.

Also Read: Tesla recalls 380,000 vehicles in US over power steering issue

Government expectation: Starting next month, the central government expects to receive applications seeking incentives for setting up EV manufacturing units in India soon after the guidelines are announced.

Also Read: Govt likely to provide incentives for local manufacturing of high-end electric vehicles

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Apple CEO Tim Cook & US President Donald Trump

Apple CEO Tim Cook called on US President Donald Trump at the White House on Thursday in the backdrop of a looming US-China trade war and its potential impact on the iPhone maker.

Tell me more: Trump's 10% levy on Chinese-made goods challenges Apple as it attempts to address sluggish iPhone sales. China is Apple’s primary manufacturing hub, while the US remains its largest market. Additionally, China is contemplating investigating Apple’s policies and the fees it charges app developers.

Trump vs Cook:

• During Trump’s first term, Cook leveraged his connection with the president to secure tariff relief for iPhones.
• However, Trump has suggested that the company may not be as fortunate this time as he plans to impose new tariffs on imported goods.

Trump's tariff plans:

• Since taking office, Trump has used tariffs as a primary tool to tackle the US trade deficit.
• Trump intensified trade tensions by threatening several countries with heavy import tariffs, including a 25% levy on cars, pharmaceuticals, and semiconductors and additional duties on Chinese goods.
• This is part of his "fair and reciprocal plan... to correct longstanding imbalances in international trade," which he announced in mid-February.

Also Read: Indian semiconductor firms see little impact of Trump's tariff threat

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Elon Musk’s Starlink is set to receive approval from the Indian space regulator IN-SPACe soon, as the company aims to launch commercial broadband-from-space services in India.

Agreed stipulations: Starlink has accepted most of the key provisions necessary for obtaining a Global Mobile Personal Communication by Satellite (GMPCS) licence, although the company remains noncommittal on certain points.

• Starlink has agreed to the requirement of relocating user terminals, which are tied to the subscriber’s opted geolocation, and any shifting will need proper authorisation.
• The government has decided that shifting the user terminal at the user level will not be allowed.
• The company also has agreed to set up its network control and monitoring centre in India and will not route data through gateways in neighbouring countries.

Disagreements: Starlink has not yet agreed to establish monitoring zones along India’s international borders or provide services throughout the country, including specific regions of J&K and Ladakh. According to current regulations, companies must provide monitoring facilities for 10 kilometres across international borders to law enforcement agencies (LEAs).

Also Read: After Elon Musk-Mukesh Ambani tussle, India bets satellite spectrum policy can attract many companies

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The Trump administration is ready to proceed with its antitrust cases against Amazon and Meta, reaffirming its commitment to curbing Big Tech's market dominance.

Tell me more: Recently appointed Federal Trade Commission (FTC) chair Andrew Ferguson confirmed in an interview with FOX Business that ongoing cases against Amazon and Meta will proceed, emphasising his commitment to "holding Big Tech's feet to the fire."

Yes, but: Ferguson’s move comes amid Big Tech’s attempts to MAGA-fy itself and align itself to the Trump administration by yielding to some of its ideological demands, such as “free speech.”

Khan-servatives: The Biden administration's antitrust czar, Lina Khan, faced bitter criticism from Silicon Valley over what some viewed as aggressively blocking major Big Tech acquisitions. However, she found some fans on the Republican side, including then-senator and now-vice president JD Vance and Missouri senator Josh Hawley.

However, Ferguson said the agency would strictly follow "the law, not my preferences."

Also Read: Donald Trump Inauguration day: From Apple to Amazon, full list of top US companies that have donated for swearing-in ceremony

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In a clear indication that global companies are eager to engage in India’s chip manufacturing ecosystem, specialty chemicals and gas producers like Merck and Linde are establishing facilities to support India’s semiconductor industry.

Quote, unquote: "Merck is looking to set up a plant to manufacture specialty chemicals here in India," said a person aware of the plans of the German company.

"As a leading global industrial gases and engineering company, Linde is an essential supplier to the semiconductor industry," Linde said in a statement to ET.

Other details: Semiconductor manufacturing involves more than 150 chemicals, more than 30 gases, and minerals in its production processes. The success of chip fabrication largely depends on the reliability, safety, and innovation of these chemicals and gases.