The India-China EV Tech Thaw is raising hopes among Indian automakers that restrictions affecting Chinese technology, components, investments, and business partnerships could ease. The development comes as manufacturers accelerate the development of electric vehicles, hybrids, plug-in hybrids, and range-extender models.
Industry attention is focused on Chinese President Xi Jinping’s expected visit to New Delhi for the BRICS Summit in September 2026. Expectations strengthened after National Security Adviser Ajit Doval held the 25th round of Special Representatives’ talks with Chinese Foreign Minister Wang Yi in Beijing.
Why India Still Needs Chinese EV Capabilities
China is a source of EV platforms, battery cells, power electronics, electric powertrains, and rare-earth permanent magnets. Consequently, the India-China EV Tech Thaw matters beyond diplomacy: easier access could shorten development cycles, improve component availability, and support affordable electrification.
India’s dependence remains. China supplied 36% of India’s $17.75 billion worth of auto-component imports from Asia during FY26. India has started approving Chinese investments, including a joint venture involving Uno Minda, but operational barriers remain.
Technology, Magnets and Visas Remain Key Barriers
Chinese companies remain reluctant to transfer core battery technology following stricter controls. For rare-earth magnets used in EV motors, Beijing reportedly permits exports to India mainly as assembled rotors or finished motors, limiting access to raw components.
Visa restrictions are another obstacle. Indian engineers and technical teams face difficulty visiting Chinese suppliers and trade fairs, disrupting collaboration, product validation, and manufacturing support. The India-China EV Tech Thaw could therefore help restore technical engagement as well as trade.
How Automakers Are Reducing Supply Risks
Indian companies are pursuing strategies. Mahindra & Mahindra, Maruti Suzuki, and Tata Motors are importing or exploring Chinese blade cells and partnerships with battery specialists such as BYD and Gotion, including Gotion’s association with Tata Autocomp.
Meanwhile, Larsen & Toubro has localized 98% of traction-motor components, representing 70% of the motor’s value, at its Tamil Nadu facility. Varroc Engineering is developing a rare-earth-free EV motor to reduce exposure to Chinese mineral controls. JSW Group, Stellantis, and Nissan are also pursuing alliances that may help them avoid development timelines.
What Happens Next?
The India-China EV Tech Thaw offers cautious optimism, not an immediate breakthrough. Any easing of investment reviews, visas, technology access, or component controls could strengthen India’s EV supply chain. However, localization and alternative technologies will remain essential for long-term resilience.
Related Articles:
