On June 24 local time, the British newspaper Reuters reported that the Indian government has continuously imposed restrictions on Chinese companies over the past few years. However, in the field of electric vehicles, Chinese and Indian automakers are still exploring new cooperation models. This has helped Chinese-made products make progress in the world's third-largest automobile market, but it also puts pressure on Japanese automakers that are deeply involved in the Indian market.
The report mentions that after the border conflict between China and India in 2020, the Indian government significantly strengthened its scrutiny of Chinese enterprises, restricting Chinese capital from entering several key areas. Although relations between the two countries have improved in recent years, these restrictive measures have not been completely lifted. Under such circumstances, Chinese and Indian automobile companies are still exploring new models of cooperation.
International law firm Dentons Link Legal partner Santosh Pai said that if India wants to expand its manufacturing sector and integrate more into the global supply chain, cooperation with China is almost inevitable. For Chinese companies that aim to grow into global enterprises, the huge potential of the Indian market cannot be ignored.
However, for Japanese automakers that have been deeply involved in the Indian market for a long time, this is not good news. Previously, Japanese companies did not face direct competition from Chinese brands in the Indian market. But as Chinese products make new progress in India, the local competitive landscape is beginning to change.
Former member of the Society of Automotive Engineers of China and now independent analyst Gao Hua said that Chinese electric vehicle manufacturers are aware of the importance of the Indian market and are establishing a foothold in the Indian market through supply cooperation and other means. He said, 'If Chinese companies don't participate, companies from other countries will fill this void.'
Reports indicate that Chinese companies are increasingly appearing in industries that have long been dominated by Japanese, Korean, and European companies. They are also challenging these companies with technologies that, as many analysts believe, are cheaper and faster to implement. For example, Indian auto parts manufacturer Uno Minda has established a joint venture with Chinese company HuiChuan Technology to produce electric vehicle powertrains in India. This market was previously dominated by German company Bosch Group, Japanese major motor component manufacturer Nidec, and Irish company ABB.
Video Screenshots of Indian Electric Vehicles Brands
In 2020, after India tightened investment reviews for China, technical licensing cooperation between China and India experienced rapid growth. However, this was followed by new obstacles. After the United States imposed tariffs on China last year, China responded with export control measures. As a result, the licensing cooperation between Indian battery manufacturer Amara Raja and Chinese company Guoxuan Hi-Tech regarding lithium-ion battery technology came to an end.
Executive Director Amara Raja, Vikramadithya Gourineni, confirmed that all technical cooperation between the two parties has ceased. However, he acknowledged that the company has gained considerable experience from the collaboration, including in terms of factory and production line layout design, technical route planning, and supplier resources.
Due to the inability to continue obtaining technical authorization, Amara Raja is now increasing its investment in independent research and talent development. At the same time, the company still needs to import equipment, battery cells, and raw materials from China to support its battery manufacturing plans. However, visa issues have become a new challenge—companies struggle to obtain sufficient visas, making it difficult for Chinese engineers to come to India to provide on-site technical support.
