GTRI: Push for EVs may lead to big entry of Chinese firms

Mar24,2024



New Delhi: Government's emphasis on promoting domestic Production Of electric vehicles (EVs) could lead to mass entry Chinese auto companies In the local market, a report from a think tank GTRI Said on Sunday.
Buoyed by substantial government support, China's automotive industry has developed rapidly in electric vehicle technology, making it a leading exporter of EVs and related components, the Global Trade Research Initiative (GTRI) said.
The report said that renewed policy incentives and private sector efforts to make India a hub for e-vehicle manufacturing will lead to a sharp increase in dependence on auto component imports from China.
India's auto component imports in 2022-23 were estimated at $20.3 billion, of which 30% came from China. As EVs get more attention in the country, auto component imports from China may further increase as it has a greater hold on the global supply chain of EV components. According to estimates, China has 75% of the world's battery production capacity and batteries account for 40% of the cost of EVs. It accounts for more than 50% of global EV production and exports.
The report said that “over the next few years, every third electric vehicle on Indian roads and many passenger and commercial vehicles could be made in India by Chinese companies alone or through joint ventures with Indian companies”.
GTRI founder Ajay Srivastava said that entry into the Indian market provides much-needed relief to Chinese companies. “China's EV exports to the EU and the US are declining due to increased anti-subsidy investigations and trade sanctions,” he said.



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