TPT November 2019

G LOBA L MARKE T P L AC E

feature in the list issued by China’s Ministry of Industry and Information Technology (MIIT). Via social media, Tesla confirmed that exemption from the ten per cent purchase tax could reduce the cost of buying a Tesla by up to $13,957.82. Craig Irwin, an analyst with Roth Capital, commented: “It is pretty clear Tesla is committed to China. Those relationships probably helped Tesla lobby for a successful exemption from the tax.” While no specific reason has been offered for the decision, Tesla is expanding in China, and building its Gigafactory 3 in Shanghai – its first overseas factory. The facility will produce battery cells, as well as Tesla’s Model 3 and Model Y cars, at an initial production rate target of 250,000 electric vehicles per year. During visits to the region, CEO Elon Musk has met with senior leaders, including China’s vice-president and transportation minister. Reuters reported Mr Musk’s public praise of China, amid the tensions with the USA, thanking the Shanghai and national governments for support, calling national leaders “very thoughtful” and describing China’s “amazing” progress in sustainable energy, transport and space. Toyota Kirloskar Motor (TKM) will continue to sell diesel models in India, despite anticipated price increases after the imposition of new BS-VI (Bharat Stage 6) emission standards in April 2020. Company vice-chairman Shekar Viswanathan has said that production of diesel cars will continue as long as there is demand and, to prove it, TKM has invested in a plant to manufacture diesel engines in line with BS-VI. The emission standards were set by the central government to keep a check on the pollutant levels emitted by vehicles that use combustion engines, and are largely similar to European emission norms. The Central Pollution Control Board sets timelines and implements standards which have to be followed by manufacturers. Of TKM’s total vehicle sales in India between January and July 2019, the diesel-petrol ratio was 82:18, though for passenger vehicles this drops to 50:50. Other major car makers are contemplating the future of their own diesel vehicles. Maruti Suzuki India has already announced that diesel cars will be phased out from next year, and Tata Motor is considering taking small diesel cars out of its portfolio. TKM, a joint venture between Toyota and the Kirloskar group, said it has the technologies in place for a range of electric vehicles (EV) that can be introduced as and when the market requires. Mr Viswanathan said Toyota has the core electrifica- tion technologies for hybrid electric vehicles, plug-in hybrid electric vehicles, battery electric vehicles and fuel cell electric vehicles: “However, the speed of market launch differs greatly Diesel might be falling out of favour, but it’s not finished yet

isn’t a job that anyone imagined a couple decades ago. In fact, there’s an academic research report that says around half of one per cent of jobs created every year are entirely new. By 2030, we could be looking at another eight to nine per cent of jobs in that time period that simply don’t exist today.” The data suggests that, far from making up the shortfall in employees, automation and robotics might be adding to the employers’ problem (and employees’ opportunities). EU considers its impor ts and tariffs Taking advantage of import statistics that were unavailable in July 2018, the time of its original safeguard measures, the European Commission is recommending changes to the list of products from developing nations that are granted exclusion from the quota system. The measures were designed to prevent the transfer of goods originally destined for the USA. Brazil and India will become exempt from the quotas for stainless steel hot rolled sheets and strip, and Turkey will be exempt from the measures for stainless steel hot rolled quarto plates. The exemptions could result in higher imports from these countries into the EU. Imports of hot and cold rolled sheets and strip from Indonesia exceeded the World Trade Organization’s three per cent threshold in 2018.As a result, Indonesia will lose its “developing nation” status exclusion for these materials, so rendering the products subject to the quota and tariff systems. In the first quarter of 2019, hot rolled stainless steel from Indonesia accounted for 25 per cent of total imports into the EU, while China still accounts for over half of foreign sales into Europe, indicative that safeguard measures have done little to halt the rise in stainless steel imports. Indonesian cold rolled stainless steel shipped to the EU accounted for around eight per cent of total imports in the first quarter of 2019, though Taiwan remains Europe’s largest supplier of cold rolled sheets and strip. Assuming agreement by the member states, the proposals were due to come into force in October 2019. China, Indonesia and Taiwan are also subject of an anti- dumping complaint, submitted by the international not-for- profit organisation European Steel Association (Eurofer) . The subsequent investigation will cover hot rolled stainless steel sheet and coil from the three countries and, in combination with the quotas imposed on Indonesia, is expected to result in a reduction in imports of hot rolled stainless steel products for the remainder of the year. Automot i ve An ease of trade tension in some (electric) quar ters Regardless of trade tension with the USA, China has announced its exemption of Tesla Inc’s electric vehicles from purchase tax. Tesla markets 16 models in China, and all

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NOVEMBER 2019