Schedule a Call Back
China orders automakers to avoid investing in India to safeguard EV technology
Industry News- Sep 13,24
The directive comes amid strained relations between China and India, particularly following a deadly border clash in 2020.
Beijing has instructed Chinese automakers to refrain from making auto-related investments in India, while advising them to keep advanced electric vehicle (EV) technology within China. This directive comes as China seeks to safeguard its EV technology and mitigate regulatory risks.
In a July meeting, China’s Ministry of Commerce advised over a dozen automakers to export vehicle components, or “knock-down kits,” rather than establishing new manufacturing facilities abroad. The Ministry also emphasised that any planned investments in Turkey should be reported to both the Ministry of Industry and Information Technology and the local Chinese embassy in Turkey.
This guidance reflects China's strategic push to retain key production processes domestically while its automakers, including BYD and Chery Automobile, establish factories in Europe to circumvent tariffs on Chinese exports. BYD, for example, is planning a $1 billion plant in Turkey and is also expanding operations in Brazil and Spain to meet local component requirements and avoid trade barriers.
The directive comes amid strained relations between China and India, particularly following a deadly border clash in 2020. It also poses a challenge to European countries seeking to attract Chinese carmakers for local economic benefits. While some Chinese automakers have begun setting up plants in Europe, they face scrutiny over whether these facilities meet the necessary rules-of-origin requirements for tariff-free access.
Chinese state-owned SAIC Motor Corp., which has faced scrutiny over financial irregularities related to its Indian operations, has been reducing its stake in MG Motor India, signalling further shifts in its investment strategy.
Despite these developments, Chinese EV stocks experienced declines, with SAIC Motor, Geely Automobile Holdings, and BYD all seeing drops in their respective markets.
(moneycontrol)
Related Stories
Electrical & Electronics
Empowering India’s Electronics Revolution with Advanced Glass Powder Solutions
Glass powder from Japan's Nippon Electric Glass (NEG) offers unmatched performance. The company, at Electronica India 2025, will showcase how its innovative glass powder technologies are shaping the..
Read moreAuto & Auto Components
ZF Group to Supply Electric Park Brake System for EV Platform in India
ZF will supply its Electric Park Brake (EPB) system to a leading Indian OEM for its new EV platform, marking ZF's first-ever SOP for EPBs in India's passenger vehicle market, enhancing safety and ef..
Read moreAuto & Auto Components
VinFast Launches EV Assembly Plant in India, Boosting Auto Manufacturing
VinFast opens its first EV plant outside Vietnam in Tamil Nadu, aiming to scale production, create jobs, and support India's emergence as a green mobility and manufacturing hub.
Read moreRelated Products
Tata Motors unveils facilities for development of Hydrogen propulsion tech
AUTO COMPONENTS & ACCESSORIES
Tata Motors, India?s largest automobile company, unveiled two state-of-the-art & new-age R&D facilities for meeting its mission of offering sustainable mobility solutions. The unveilings constitute of Read more
Tata Motors plans petrol powertrain for Harrier and Safari SUVs
AUTO COMPONENTS & ACCESSORIES
Tata Motors is in the process of developing a new petrol powertrain for its premium sports utility vehicles, the Harrier and Safari, as confirmed by a senior company official. Currently, these models Read more
Electric Vehicle Charger
AUTO COMPONENTS & ACCESSORIES
RRT Electro is engaged in manufacturing of customized Power Electronic Products over two decades having capability to Design, Develop, Prototyping, Regulatory Compliance testing & Certification, Manuf Read more
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
