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India levies photovoltaic tariffs

Number of clicks:782018-07-26 22:20:05 source: 21世纪经济报道

Polaris solar photovoltaic network news: PV InfoLink news shows that on the evening of July 30, the Indian Ministry of Finance and Taxation officially announced: according to the final recommendations of the General Administration of Trade Relief (DGTR), starting from July 30 to China, Malaysia and Solar cells in other developed countries (whether packaged as components or not) impose a 25% guaranteed tariff. According to the announcement of the Ministry of Finance of India, the following tariffs will be imposed according to the value of imported goods. If there is anti-dumping tax in the future, this tariff will be levied after the deduction of anti-dumping duties.

Since the developing countries outside China and Malaysia alone do not exceed 3% of India's total imports, and the total exports to India do not exceed 9% of India's total imports, the safeguards tax can be waived.


      


Since the double-reverse in Europe and the United States, India's attitude toward the levy of photovoltaic protection tax has been repeated, and now officially announced the beginning of the levy, although to a certain extent gives Indian local manufacturers the opportunity to increase market share. However, in the short term, India's domestic production capacity is insufficient, and it still needs to rely on imports. Therefore, the implementation of defensive tariffs may only bring negative factors such as increased costs to the Indian market.

For China's components with a market share of about 90% in India, the main impact behind this is that the price is not as competitive as it used to be.

PV InfoLink expects that the price of components exported from China to India will have to fall further to the cost line in the short term to maintain competitiveness. After 531, the cost of component packaging in China has dropped to around US$0.1-0.11 per watt, making vertical integration. The full cost of the conventional polycrystalline modules of the plant currently only needs 0.23-0.24 US dollars per watt. If the price of conventional polycrystalline components of 0.24 US dollars per watt is calculated, the price in India will be raised after the 25% tax rate. The price of 0.3 yuan per watt is about the same as the price of local components made in India in the near future.

"In the second half of 2018 and even in the first quarter of 2019, the market will weaken, and the Indian market will become more uncertain. For the domestic small and medium-sized manufacturers that have previously regarded India as a life-saving destination, the pressure will be even greater. In an interview with 21st Century Business Herald, Cao Junru, an analyst at EnergyTrend, said that in the future, small and medium-sized factories can only try to push down the price to grab the market. However, as India's market capacity has become smaller, the scale of the impact of these price cuts may be limited.

"At the same time, in the international market, although Europe, Australia and the Middle East and North Africa still have growth, on the one hand, these growth rates cannot offset the reduction in China. On the other hand, this international layout is basically the world of big factories. Small and medium-sized factories will still be under a lot of pressure." Cao Junru said.

Photovoltaic expert Wang Shujuan also said that in the first half of 2018, the Indian PV market accounted for about 20% of China's exports. After the closure of the US market, the introduction of the Indian protection tax will make it difficult for China Overseas to find more than 6GW.

Cao Junru pointed out that under the circumstances that both the internal and external markets have been reduced, "technology pursues progress, costs continue to decrease, and production capacity and estuary spread risk. Basically, these directions are still not taken away. The big manufacturers will have a better chance to survive, and the difficulty remains. Outdated production capacity."

As reported in the 21st Century Business Herald, for companies such as GCL, Trina Solar, Chint New Energy, and Longji, which have long established factories in India, they can continue to receive local cost advantage without being affected by the protection tax. 

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