It appears China is getting richer as India expands its electric vehicle (EV) sector, driven by government initiatives and consumer adoption. In 2023-24, the country sold 1.9 million EVs, making up 7.46 per cent of total automobile sales, said a report in The Print. This growth, it noted, led to increased dependence on Chinese imports, particularly for lithium-ion batteries and other key components.
According to The Print report, India is heavily reliant on China for its EV supply chain, with imports of EV batteries and magnets exceeding $7 billion over the last five years. These imports do not include smaller but essential components such as battery insulation materials, noted the report. Experts have raised concerns that this growing dependence may turn India into an "EV colony" of China, further widening the trade imbalance between the two nations.
China plays a major role in the global EV industry, accounting for over 53 per cent of the world&rsquo;s EV battery production in 2024. The country&rsquo;s government-backed investments in the sector have helped establish a strong global presence, affecting not only India but also markets in the US and the European Union.
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Chinese firms such as BYD and MG Motor have expanded their presence in India, with projections indicating that one in three EVs on Indian roads could be manufactured by Chinese companies in the near future. This trend raises concerns about economic and strategic vulnerabilities, as China holds significant leverage over the supply chain.
<h2 class="p1">India's Lack of Domestic Battery Manufacturing</h2>
Despite India&rsquo;s efforts to boost domestic EV production, the country currently lacks significant battery manufacturing capacity. Most Indian EV manufacturers, including Tata Motors, Mahindra &amp; Mahindra, Ola Electric, TVS, and Ather, do not produce their own batteries. Instead, they rely on imports of battery cells, mainly from China, with local companies like Exide Energy and Amara Raja assembling them in India.
Industry experts highlight that manufacturing EV batteries requires the production of battery cells, which no Indian company currently undertakes. This adds to India&rsquo;s import dependence, as lithium-ion battery imports have more than doubled since 2019, with China supplying over 75 per cent of these imports.
<h2 class="p1">Motors and Rare Earth Metals</h2>
In addition to batteries, Indian EV manufacturers rely on China for rare earth metals used in motors and controllers. Permanent magnets made from neodymium-iron-boron (Nd-Fe-B) are essential components of EV motors, and India has no significant domestic production capacity for these materials. As a result, the country must import them, with China serving as the primary supplier.
Chinese firms control a significant portion of the global supply of rare earth metals, further solidifying their influence over India&rsquo;s EV sector. Smaller EV components, such as insulation materials and contractors, are also primarily sourced from China.
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<h2 class="p1">Policy Measures and Trade Shifts</h2>
To reduce import dependence and promote domestic manufacturing, India has imposed high import duties on completely built EVs, ranging from 70 per cent to 100 per cent. However, in March 2024, the government lowered import duties to 15 per cent for EV manufacturers committing to invest $500 million in local production.
This policy is expected to facilitate the entry of international players like Tesla into the Indian market. At the same time, German automakers, including Audi, Mercedes, Volkswagen, BMW, and Skoda, have gained a stronger foothold in the Indian EV import market. Germany accounted for a significant share of EV imports into India in 2023, surpassing China.
<h2 class="p1">Challenges and the Road Ahead</h2>
Experts suggest that India needs to focus on research and development (R&amp;D) to reduce dependency on China and establish a competitive EV industry. Currently, Indian battery companies allocate less than 2 per cent of their net sales to R&amp;D, while Chinese firms like BYD invest at least 10 per cent.
Some industry analysts argue that India should prioritise innovation in battery technology rather than competing with China in mass production. Given the rapid advancements in EV battery technology, investment in outdated battery manufacturing processes could become obsolete within a few years.
China's dominance in the global EV supply chain remains a significant challenge for India. Without indigenous alternatives for batteries, motors, and other key components, India's EV industry remains largely an assembly operation dependent on foreign imports. While domestic manufacturing efforts are underway, it will take years for India to establish a self-sufficient EV ecosystem.

Indian EV manufacturers rely on China for rare earth metals used in motors and controllers. Permanent magnets made from neodymium-iron-boron (Nd-Fe-B) are essential components of EV motors, and India has no significant domestic production capacity for these materials.

It appears China is getting richer as India expands its electric vehicle (EV) sector, driven by government initiatives and consumer adoption. In 2023-24, the country sold 1.9 million EVs, making up 7.46 per cent of total automobile sales, said a report in The Print. This growth, it noted, led to increased dependence on Chinese imports, particularly for lithium-ion batteries and other key components. According to The Print report, India is heavily reliant on China for its EV supply chain, with imports of EV batteries and magnets exceeding $7 billion over the last five years. These imports do not include smaller but essential components such as battery insulation materials, noted the report. Experts have raised concerns that this growing dependence may turn India into an "EV colony" of China, further widening the trade imbalance between the two nations. China plays a major role in the global EV industry, accounting for over 53 per cent of the world’s EV battery production in 2024. The country’s government-backed investments in the sector have helped establish a strong global presence, affecting not only India but also markets in the US and the European Union. Also read: China's BYD to complete USD 1 billion Indonesia plant by year-end, executive says Chinese firms such as BYD and MG Motor have expanded their presence in India, with projections indicating that one in three EVs on Indian roads could be manufactured by Chinese companies in the near future. This trend raises concerns about economic and strategic vulnerabilities, as China holds significant leverage over the supply chain. India's Lack of Domestic Battery Manufacturing Despite India’s efforts to boost domestic EV production, the country currently lacks significant battery manufacturing capacity. Most Indian EV manufacturers, including Tata Motors, Mahindra & Mahindra, Ola Electric, TVS, and Ather, do not produce their own batteries. Instead, they rely on imports of battery cells, mainly from China, with local companies like Exide Energy and Amara Raja assembling them in India. Industry experts highlight that manufacturing EV batteries requires the production of battery cells, which no Indian company currently undertakes. This adds to India’s import dependence, as lithium-ion battery imports have more than doubled since 2019, with China supplying over 75 per cent of these imports. Motors and Rare Earth Metals In addition to batteries, Indian EV manufacturers rely on China for rare earth metals used in motors and controllers. Permanent magnets made from neodymium-iron-boron (Nd-Fe-B) are essential components of EV motors, and India has no significant domestic production capacity for these materials. As a result, the country must import them, with China serving as the primary supplier. Chinese firms control a significant portion of the global supply of rare earth metals, further solidifying their influence over India’s EV sector. Smaller EV components, such as insulation materials and contractors, are also primarily sourced from China. Also read: A rare spectacle of 125 vintage cars and 50 vintage motorcycles! Policy Measures and Trade Shifts To reduce import dependence and promote domestic manufacturing, India has imposed high import duties on completely built EVs, ranging from 70 per cent to 100 per cent. However, in March 2024, the government lowered import duties to 15 per cent for EV manufacturers committing to invest $500 million in local production. This policy is expected to facilitate the entry of international players like Tesla into the Indian market. At the same time, German automakers, including Audi, Mercedes, Volkswagen, BMW, and Skoda, have gained a stronger foothold in the Indian EV import market. Germany accounted for a significant share of EV imports into India in 2023, surpassing China. Challenges and the Road Ahead Experts suggest that India needs to focus on research and development (R&D) to reduce dependency on China and establish a competitive EV industry. Currently, Indian battery companies allocate less than 2 per cent of their net sales to R&D, while Chinese firms like BYD invest at least 10 per cent. Some industry analysts argue that India should prioritise innovation in battery technology rather than competing with China in mass production. Given the rapid advancements in EV battery technology, investment in outdated battery manufacturing processes could become obsolete within a few years. China's dominance in the global EV supply chain remains a significant challenge for India. Without indigenous alternatives for batteries, motors, and other key components, India's EV industry remains largely an assembly operation dependent on foreign imports. While domestic manufacturing efforts are underway, it will take years for India to establish a self-sufficient EV ecosystem.

'$7 billion in 5 years': How China is getting rich from India's EV boom, says report

In a bold statement that underscores the rising tensions between China and the West over the electric vehicle (EV) industry, Wang Chuanfu, the founder and chairman of BYD, one of China's leading EV manufacturers, claimed that foreign countries are "afraid" of Chinese electric vehicles. Wang's remarks came during a speech at an industry summit held in the southwestern Chinese city of Chongqing on Friday.

The 58-year-old billionaire, who helms China's largest automaker, took a swipe at the efforts of European and U.S. authorities to constrain imports of Chinese-made electric cars. "There are many examples of politicians in other countries who are worried about EVs in China," Wang stated, asserting that the reaction of Western nations is a testament to the strength and competitiveness of China's automotive industry.

"If you are not strong enough, they will not be afraid of you," he told the audience, highlighting the perceived threat posed by China's rapidly growing EV sector.

Wang's comments come amidst escalating trade tensions between China and the West over the EV industry. The European Union is expected to unveil tariffs targeting Chinese electric cars in the coming weeks, following an investigation into Beijing's alleged subsidies for its domestic EV sector. This move is likely to impact the small but growing number of Chinese EV imports into Europe.

China, in turn, has hinted at retaliatory measures, suggesting the imposition of its own 25 per cent tariffs on certain imports, further exacerbating the trade dispute.

According to data from Dataforce, EVs manufactured by Chinese brands, such as SAIC's MG and BYD, accounted for just under 9 per cent of battery-electric vehicles sold in Europe last year. However, this figure is projected to rise to approximately a fifth by 2027, as reported by the lobby group Transport &amp; Environment in March.

BYD itself has emerged as a dominant player in the global EV industry, having halted production of cars solely with combustion engines in early 2022. By last year, the Shenzhen-based auto giant had produced and sold 3 million electric and plug-in hybrid vehicles, securing a spot in the top 10 list of global automakers by sales.

During his speech on Friday, Wang called for the industry to embrace greater competition to manage the transition to electric vehicles effectively. In recent months, BYD has spearheaded a new price war in China, slashing the costs of its EVs and plug-in hybrids across the board, targeting traditional automakers such as Toyota and Volkswagen Group with the slogan "electricity is cheaper than oil."

Wang added that electric and plug-in hybrid vehicles are on their way to overtaking conventional engines, stating, "That is the overriding and unstoppable trend."

As the global EV market continues to evolve rapidly, Wang's comments highlight the growing tensions between China and the West over the future of the automotive industry, with both sides vying for dominance in this crucial sector.

In a bold statement that underscores the rising tensions between China and the West over the electric vehicle (EV) industry, Wang Chuanfu, the founder and chairman of BYD, one of China's leading EV manufacturers, claimed that foreign countries are "afraid" of Chinese electric vehicles.

In a bold statement that underscores the rising tensions between China and the West over the electric vehicle (EV) industry, Wang Chuanfu, the founder and chairman of BYD, one of China's leading EV manufacturers, claimed that foreign countries are "afraid" of Chinese electric vehicles. Wang's remarks came during a speech at an industry summit held in the southwestern Chinese city of Chongqing on Friday. The 58-year-old billionaire, who helms China's largest automaker, took a swipe at the efforts of European and U.S. authorities to constrain imports of Chinese-made electric cars. "There are many examples of politicians in other countries who are worried about EVs in China," Wang stated, asserting that the reaction of Western nations is a testament to the strength and competitiveness of China's automotive industry. "If you are not strong enough, they will not be afraid of you," he told the audience, highlighting the perceived threat posed by China's rapidly growing EV sector. Wang's comments come amidst escalating trade tensions between China and the West over the EV industry. The European Union is expected to unveil tariffs targeting Chinese electric cars in the coming weeks, following an investigation into Beijing's alleged subsidies for its domestic EV sector. This move is likely to impact the small but growing number of Chinese EV imports into Europe. China, in turn, has hinted at retaliatory measures, suggesting the imposition of its own 25 per cent tariffs on certain imports, further exacerbating the trade dispute. According to data from Dataforce, EVs manufactured by Chinese brands, such as SAIC's MG and BYD, accounted for just under 9 per cent of battery-electric vehicles sold in Europe last year. However, this figure is projected to rise to approximately a fifth by 2027, as reported by the lobby group Transport & Environment in March. BYD itself has emerged as a dominant player in the global EV industry, having halted production of cars solely with combustion engines in early 2022. By last year, the Shenzhen-based auto giant had produced and sold 3 million electric and plug-in hybrid vehicles, securing a spot in the top 10 list of global automakers by sales. During his speech on Friday, Wang called for the industry to embrace greater competition to manage the transition to electric vehicles effectively. In recent months, BYD has spearheaded a new price war in China, slashing the costs of its EVs and plug-in hybrids across the board, targeting traditional automakers such as Toyota and Volkswagen Group with the slogan "electricity is cheaper than oil." Wang added that electric and plug-in hybrid vehicles are on their way to overtaking conventional engines, stating, "That is the overriding and unstoppable trend." As the global EV market continues to evolve rapidly, Wang's comments highlight the growing tensions between China and the West over the future of the automotive industry, with both sides vying for dominance in this crucial sector.

Chinese EV giant founder claims West fears rise of Chinese electric cars

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'$7 billion in 5 years': How China is getting rich from India's EV boom, says report

Chinese EV giant founder claims West fears rise of Chinese electric cars