Hi,
Yes. It will affect Websol in the long run but not immediately as good margin is available in DCR market. At the same time, Chinese manufacturers have few hurdles to comprehend.
- Loss making should be stopped. To achieve this, Either a) full installed capacity has to be utilised or b) Price hike has to be done.
a) is ruled out as they already struggle with over capacity. b) is a possibility but it is always better to sell the inventory at a lower price ( next one year) than seeking price hike which may lead to shutting the shops.
So, Ultimately the Chinese export capacity will comedown in future which will result in increase of input material cost for Indian players.
With the above scenario, Indian Module only players will find it difficult to pass on the price increase to buyers in India whereas Cell players/ fully backward integrated ones will enjoy the margins as the gap between Chinese and Indian Cells with help of DCR, ALMM List II would have become narrow which will pivot EPC, IPP and other buyers towards Make in India products.
2). US/EU export market of china is already affected due to regional policies. It is a boon for Indian manufacturers to get better margins there in future.
In any case, Indian Cell manufacturers will enjoy the dream run minimum till FY2028 due to scarcity of Make in India cells.
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