Overseas construction has become the preferred strategy for Chinese PV companies
Number of clicks：1612018-07-26 22:20:07 source: Guangdong Sinpo New Materials Co.,Ltd
In fact, as early as July 16 this year, the General Administration of Trade and Relief of India made a formal recommendation on the Safeguard Investigation for solar cells: 25% of the defensive tariffs in the first year, and 20 in the first six months of the second year. %, 15% after the last 6 months. However, this proposal will only take effect after the Indian Ministry of Finance has decided.
The ruling clearly stated: “Does not apply to related goods imported from developing countries, except the People’s Republic of China and Malaysia.”
The Chinese PV companies, which have been plagued by the domestic 531 policy, are preparing to focus their energies on overseas PVs in the second half of the year. They can’t help but exclaim: It’s really a night of the house leaking, 531 waves are not flat, 730 waves are Up!
Indian PV market situation
According to customs statistics, China's exports to India exceeded 9 GW in 2017. The PV installations in India last year were around 10 - 11 GW, and China's PV modules accounted for about 90% of the market share in India.
Since 2018, due to the fear of trade tax, China's exports to India in the first half of the year fell by 33% year-on-year. From January to June 2018, China's exports of photovoltaic modules to India were about 3.6GW, accounting for 20.1% of total exports. India has become the largest overseas market for Chinese PV companies.
Compared with 39.3% of market share in 2017, India’s share of China’s exports has fallen to 20.1% in 2018.
Last year, the PV installation in the Indian market was about 10-11 GW. Due to the frequent trade war investigations initiated by India since last year and the beginning of taxation interference, India's component demand is expected to be reduced to 7-9 GW this year.
The impact of India's 730 policy on Chinese PV companies
Since this tax is mainly for solar cells (whether packaged or not), many domestic PV inverter companies have factories in India (click to view related news: Sunshine Power India factory officially The production of the peripheral parts of the power station has little effect.
As listed as a “developing country”, the Indian government imposes a 25% import tariff on solar cells and components imported from China and Malaysia to protect domestic manufacturers, but does not include solar cells and components imported from Indonesia and Vietnam.
Domestic PV module companies such as GCL, Trina Solar, Chint New Energy, Longji, and Dongfang Risheng have benefited from the early start of overseas distribution, with component production workshops in Indonesia and Vietnam. This allows them to continue to supply solar energy products to India without paying import duties.
In the next two years, due to the meager profits after entering the Indian market, these enterprises that have established factories in overseas developing countries will be exempt from the protection tax or will become a major competitive advantage compared with enterprises that need to pay the protection tax.
PVInfolink believes that the price of polycrystalline components exported from China to India will fall to the cost line in the short term to maintain competitiveness. If the price of conventional polycrystalline components of 0.24 US dollars is calculated and the tax rate is 25%, the domestic price in India will be Raised to $0.30 per watt, which is roughly equal to the price of local components in India in the near future. The enthusiasm of Chinese PV companies to export to India has declined.