Chinese EV Technology Gains Ground in India Despite Investment Barriers

While Chinese electric vehicle manufacturers remain largely excluded from India’s market due to investment restrictions imposed in 2020, their technology is increasingly finding its way into the country through supply and licensing partnerships. Tata Motors recently announced plans to use a vehicle platform developed by Chinese automaker Chery for its upcoming premium EVs, highlighting a growing trend of technology collaboration without direct Chinese ownership.

Indian companies are turning to Chinese expertise to accelerate EV development and strengthen local manufacturing capabilities. Government officials have indicated support for arrangements that eventually shift production and supply chains to India. Similar partnerships are emerging across the automotive sector, including collaborations in EV powertrains and battery manufacturing, where Chinese technology is often considered cost-effective and advanced.

However, cooperation has faced challenges due to Beijing’s tighter export controls on technology. Indian battery maker Amara Raja was forced to halt a technology licensing agreement with China’s Gotion and has since focused on in-house research while continuing to import equipment and materials from Chinese suppliers. Despite political sensitivities and regulatory hurdles, industry experts believe India and China will remain connected through strategic technology partnerships as the EV market continues to expand.

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