March 26, 2024
China accounts for 75% of the world’s EV battery production capacity and more than 50% of the global EV production
India’s auto component imports from China accounted for 30% of the total US$ 20.3 billion in 2022-23
Stakeholders in the Indian automotive industry must accurately weigh the risks of being overly dependent on the import of critical EV components from China
This could give rise to trade imbalances and hamper indigenous development of these EV technologies by domestic companies within India
By virtue of India’s decarbonisation efforts and consequent thrust towards electric mobility, the Global Trade Research Initiative (GTRI) has reported that the move towards increasing the production of Electric Vehicles (EVs) could widen the footprint of Chinese auto manufacturers in the country.
All thanks to proactive backing from its government, China’s EV and EV component manufacturing sectors have witnessed prolific growth. The country accounts for 75% of the world’s EV battery manufacturing capacity and contributes to over 50% of the global capacity for EV exports and production.
According to the GTRI report, about one-third of India’s electric vehicles could be of Chinese origin through standalone companies or local collaborations with Indian companies in the years to come.
As of fiscal year 2022-23, 30% of India’s cumulative $20.3 billion imports of auto components came from China. With the growing transition towards electric mobility, the GTRI report suggests that this share could surge upwards, further compounded by China’s intentions of becoming firmly entrenched in India’s commercial and passenger vehicle markets.
The report states that stakeholders in the Indian automotive industry must accurately weigh the risks of being overly dependent on the import of critical EV components from China, which could give rise to trade imbalances and hamper indigenous development of these EV technologies by domestic companies within India
Source: Mint