India Turns to Chinese Technology to Accelerate Electric Vehicle Transition Amid Supply Chain Challenges
As the global electric vehicle (EV) landscape evolves, India is strategically leveraging Chinese technology to bolster its own EV transition, a move that contrasts sharply with the U.S. approach of erecting trade barriers against Chinese manufacturers. Industry experts argue that without Chinese tech, India would face significant operational challenges, including supply shortages and reduced product diversity.
Pragathi Darapaneni, a senior battery materials scientist, emphasized that Indian manufacturers rely heavily on Chinese suppliers for crucial components such as lithium-ion cells and power electronics. This dependency is set against a backdrop of strained relations, highlighted by the 2020 border clashes that led to bans on Chinese apps and restrictions on automakers like BYD. Recently, however, India reduced tariffs on over 35 EV components, predominantly sourced from China, signaling a continued reliance on its neighbor for vital technologies.
Despite generous government incentives aimed at making EVs more affordable, the transition has been slow; electric vehicles accounted for just 7.6% of new sales in 2024. Recent regulatory changes, which limit subsidies to fully assembled EVs made in India, have further exposed underlying vulnerabilities in the sector—leading to a significant drop in consumer funding and slowing sales.
Experts warn that while collaborations with Chinese firms facilitate technological advancement and supply chain reliability, there is a risk of increased market dominance by foreign players. Careful navigation of this relationship is crucial. As India eyes ambitious growth in its EV market—projected to expand from 480,000 units in 2025 to over 3 million by 2035—developing a robust domestic ecosystem will be key to achieving national electrification goals without compromising sovereignty or innovation.
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