The reasons may be entirely political or geopolitical in nature, the road ahead for Chinese automakers in India looks difficult. 

Chinese automaker BYD and its Indian partner Olectra Greentech (formerly known as Goldstone Infratech) is in news for its proposal to set up a manufacturing plant for electric cars in India. Certain ministry officials involved in vetting the proposal have raised security concerns, claimed an industry source.  

The truth is hard to ascertain. It is also tough to ascertain the news in various media platforms regarding BYD conveying to Olectra that it would like to drop the proposal to invest in India. The proposal to invest is claimed to be worth USD 1 billion. 

Since the clash between the Indian armed forces and Chinese armed forces at Galwan valley in 2020, the Indian Government has tightened scrutiny of Chinese investments in the country.  The ones to get affected by this move have not just been the Chinese automakers but also producers of cell phones and other goods. 

Key players in the Chinese EV market (also the world’s largest) such as BYD, SAIC and Geely have exerted their interest in exploring the Indian automobile market. While MG Motor India is a wholly-owned subsidiary of SAIC Motor, the Indian partners of BYD and Geely – Olectra Greentech and Adishwar Auto Ride respectively – are not legacy automotive players to be precise. 

Against the emerging thought process that India produces among the world’s best automobiles, such joint ventures arrangements are likely to be met with greater scrutiny, the China sentiment included. With much work going on in India on the alternative fuel technologies front, including electric, it is clear that any foreign technology or effort will only be accepted after being truly ‘Indian-ised’ or localised.   

The low entry barrier supporting the entry of start ups such as Ather Energy and Ola Electric in the EV space in India, legacy players such as Mahindra & Mahindra and Tata Motors have not stayed behind in their efforts to make exciting EVs that can address the real-time needs of Indian buyers as well as those in other markets.   

What needs careful consideration is that they are competing with global players such as Honda and Toyota, which makes the Indian automotive market a tough place to be in.   

While players like MG have an Indian management even though it is a wholly owned subsidiary of SAIC Motor (China), the fact is, the going has gotten tough for it too. The situation as a whole for Chinese companies or those that have Chinese partners seems to have turned difficult.  

At one end there's rising competition coupled with China sentiment and at the other, there's the need to invest and grow. 

With India said to be on the path to become the world’s biggest micro electromobility market, a significant shift at various levels is apparent.   

As the biggest employer in the country and the biggest tax player too, the Indian auto sector, the government is keen, turns into a leading manufacturing hub of the world. 

Courting EV players such as Tesla, the government seems clear about how it wants the foreign companies to behave when they come to do business in India. It has made itself clear that it is okay with Chinese players coming to India but they should conduct their operations lawfully and in compliance with laws of the country, mention sources. This points at the government being keen on Indian partners having a larger control of the joint venture, they add. 

The answer to this thinking may be found in how China treats foreign players organisations wanting to do business there. It makes it necessary for the organisations to have a Chinese partner. Besides that, the foreign organisations are known to face face a number of regulatory and cultural challenges. 

The authorities in China are said to favour its own over foreign players. This is despite the commitment by them to invest huge sums and ensure complete transparency in their dealings.   

India as a democratic country has its own regulatory and cultural challenges. As the world’s largest two-wheeler market, fourth largest light vehicle market and fifth largest commercial vehicle market, India is likely to come across as a more balanced market with the participation of leading American, European and Japanese brands. 

Some may have left because of reasons that are complex and also because of a marketplace that is tough to understand as well as crack. The homegrown automakers such as Mahindra & Mahindra, Ashok Leyland and Tata Motors have been giving tough condition to the foreign players in India by smartly moving up the ladder. They are also expanding their reach to some of the most competitive markets across the globe. 

They have been acquiring companies but aren't exactly acquisition hungry. It is not by fluke that Tata Motors, which owns Jaguar Land Rover and the Korean Daewoo commercial vehicle business, has come to command 86 percent of the EV market in India. The automaker has been investing in technology and transparently engaging with its suppliers and other stakeholders to build a market reach.   

Mahindra & Mahindra has been making big investments in setting up as well as upgrading its R&D facilities in India. It is making big investments in upgrading its design and development facilities in the country; in testing and validation facilities as well. A sneak peek in the MRV will reveal the extend of efforts being taken. 

Underling the Indian Government’s seriousness to turn the Indian auto industry into a leading global manufacturing hub is the stress on local technology development, local content and local manufacture. The efforts to make chips is indicative of the same.  

While the BYD, Olectra or BYD-Olectra badged electric buses operated by city and state transport undertakings (state government organisations largely) may be a common sight on Indian roads, it is also evident that the foot print of electric buses made by homegrown manufacturers such as Ashok Leyland and Tata Motors is also fast expanding.  

It was roughly two years ago that BYD announced its plans to enter the Indian electric car market, albeit at the premium end with the e6 MPV and latter with the stylish Atto 3 SUV. The company, claim sources, has already invested over USD 200 million in India. Busy expanding its dealership network across the country, it has sold over 2,000 e-cars in India in the last one and a half years, they add. 

But then, BYD is not the first Chinese auto maker whose proposal to invest in India seems to have run into rough weather. A few months back, MG Motor India was into news regarding it’s parent company wanting to dilute its stake in it. The reason being given for this, was the delay in the clearing the proposal to hike investment in Indian by its parent – SAIC Motor.   

Even though it may appear as an iconic British brand or be projected as one, MG or Morris Garages is owned by a Chinese organisation. The products it offers in India are said to be of Chinese origin even though they are assembled at a factory in Halol, Gujarat. 

With the proposal to invest by SAIC Motors being subjected to greater scrutiny, it is not surprising that MG Motor India is said to scout for a strategic investor to raise funds and fuel growth. Facing raid from the tax authority in November 2022, the company has been making efforts to cultivate a strong local supply chain for its products. It is also supporting the start up culture in India by showing interest for cooperation. 

Despite the strong China sentiment, it cannot be refuted that businesses in India continue to source from there. A large amount of raw materials for the pharma industry are said to be sourced from there by the Indian pharma companies. Likewise, Indian auto companies are also known to source a good deal of parts – including batteries and electronic parts/modules – from China. 

It is necessary that the government and people of India demand that whoever would like to business here should thoroughly engage with the local necessities, regulations and culture in spirit and on paper.    

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Cars24 has announced a strategic partnership with OpenAI to deploy artificial intelligence (AI) models and agents across its business operations. The collaboration focuses on embedding AI into vehicle discovery, sales, financing and post-purchase engagement across all markets where the company operates.

Unlike traditional pilot programmes, the initiative involves the integration of OpenAI’s technology into production environments to manage high-volume workflows. The partnership aims to transition the platform from manual automation to systems that assist in decision-making and data retrieval.

Cars24 has already deployed OpenAI’s Enterprise APIs across several internal and customer-facing functions. According to company data, the integration has resulted in a 50 percent increase in support resolution through assisted troubleshooting and an 80 percent reduction in turnaround time for service workflows.

Current deployment statistics include:

• Customer Outreach: AI agents now manage 20 percent of outbound conversations.
• Internal Adoption: 85 percent daily active usage of ChatGPT Enterprise among the central workforce.
• Functionality: Teams utilise the tools for data analysis, code development, and the summarisation of operational cases.
• Accessibility: The Cars24 application is now available on the ChatGPT Store for conversational vehicle discovery.

The partnership is designed to reduce dependencies on manual processes in automotive transactions. By embedding models into core workflows, the company intends to shorten decision cycles for buyers and sellers. Future phases of the rollout will include expanding these AI experiences to additional languages and product lines.

Vikram Chopra, CEO and Founder, Cars24, said, “Automotive commerce is operationally heavy by nature with multiple checkpoints, fragmented information and high-consideration decisions. Over time, we’ve realised that incremental improvements aren’t enough; the system itself needs to become more intelligent. Our collaboration with OpenAI is a step in that direction. By embedding AI into core workflows rather than layering it on top, we can reduce manual dependencies, improve consistency and shorten decision cycles. We don’t see this as a short-term advantage, but as foundational infrastructure that will compound in efficiency and trust over the years.”

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Tata Technologies has announced a partnership with WITTENSTEIN High Integrity Systems (WHIS) to accelerate the development of Software-Defined Vehicles (SDVs). The collaboration involves integrating WHIS’s SAFE RTOS into Tata Technologies’ automotive software stack.

The integration is designed to assist original equipment manufacturers (OEMs) and Tier 1 suppliers in meeting functional safety standards, such as ISO 26262. The partnership focuses on the transition towards connected, autonomous, and electrified mobility by providing safety-certified architectures for complex vehicle ecosystems.

SAFE RTOS provides real-time performance and reliability, serving as a component within the Tata Technologies SDV platform. This allows for the development of software architectures that support the increasing centrality of software in vehicle design.

The partnership combines Tata Technologies' experience in automotive software with WHIS's embedded software solutions to address requirements for scalable and certified systems.

Andrew Longhurst, Managing Director, WITTENSTEIN High Integrity Systems, said, “Software is at the heart of the automotive industry’s evolution. Our partnership with Tata Technologies ensures that OEMs and Tier 1 suppliers can leverage SAFE RTOS to achieve the highest levels of safety and performance in their software-defined vehicle architectures.”

Nachiket Paranjpe, President – Automotive Sales, Tata Technologies, added, “By combining Tata Technologies’ expertise in automotive software development with WHIS’s proven safety solutions, we are empowering our customers to accelerate SDV adoption and deliver cutting-edge mobility experiences.”

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CATL and the BMW Group have signed a Memorandum of Understanding (MoU) to expand cooperation on battery supply chain data exchange and decarbonisation. The agreement was finalised in Beijing during a visit by a German delegation including Chancellor Friedrich Merz.

The partnership focuses on pilot projects for cross-border data transfer under the Battery Passport framework. The companies will collaborate on carbon accounting methodologies and tools to calculate the carbon footprints of power batteries.

The initiative utilises Catena-X, a standardised automotive data ecosystem, to align technical standards and policy frameworks. By testing Battery Passport applications, CATL and BMW aim to meet China-EU regulatory requirements and establish global data standards for the battery industry.

The cooperation is intended to improve digital management and ensure compliance with EU market access regulations regarding green product competitiveness.

The strategic relationship between CATL and BMW began in 2012. Previous collaborations have covered battery production, research and development and supply chain sustainability. This MoU shifts the partnership from product-level cooperation to institutional coordination for electric mobility.

CATL stated its intention to continue cooperation with international partners to use technology for the global energy transition and the sustainability of the automotive sector.

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The BMW Group is accelerating the digital transformation of its manufacturing operations by embedding artificial intelligence deeply into physical processes. A central focus of this strategy is Physical AI, a concept that unites digital intelligence with machinery and robotics. This integration allows systems like humanoid robots to function effectively within live production environments. For the first time, this approach is being introduced in Europe through a pilot project at the company’s Leipzig plant, where humanoid robots will be tested in the assembly of high-voltage batteries and component manufacturing. This initiative builds on a previous deployment at the Spartanburg plant in United States, where valuable experience was gained and is now being used to refine and scale the technology.

Artificial intelligence is already embedded throughout the BMW production system, underpinning functions such as digital twins, AI-supported quality assurance and autonomous transport in intralogistics. A unified data architecture serves as the foundation for this intelligence, enabling real-time access to consistent and standardised information across all manufacturing locations. This infrastructure supports the deployment of digital AI agents capable of autonomous decision-making in complex environments. When these agents are paired with robotic systems, they give rise to Physical AI, which represents a significant evolution in production technology.

The company views humanoid robotics as a strategic addition to its automation portfolio. These robots are particularly suited to tasks that are repetitive, physically strenuous or present safety risks. By deploying them in such roles, the company aims to reduce physical strain on employees and enhance workplace conditions. To drive this forward, a Center of Competence for Physical AI in Production has been established to consolidate expertise and facilitate knowledge sharing across the organisation.

A structured process governs the evaluation of potential technology partners. Candidates are assessed against criteria related to maturity and industrial applicability, followed by laboratory testing using real production scenarios. Successful tests lead to limited deployments under actual factory conditions before advancing to full pilot phases. This methodology ensures that only thoroughly vetted solutions are integrated into series production.

The Leipzig pilot is being conducted in collaboration with Hexagon, a longstanding partner specialising in sensor technology and software. Following theoretical and laboratory evaluations, an initial deployment of Hexagon’s humanoid robot, AEON, took place at the plant in December 2025. A second test phase is scheduled for April 2026, with the full pilot set to begin in the summer of that year. The robot’s human-like design allows for the attachment of various tools and grippers, making it adaptable for multiple tasks in battery assembly and parts manufacturing.

Earlier work at the Spartanburg plant provided critical insights into the practical application of humanoid robotics. In partnership with Figure AI, the robot Figure 02 was deployed in body shop operations, where it handled the precise placement of sheet metal parts for welding. Over 10 months, the robot supported the production of more than 30,000 vehicles, operating in 10-hour shifts and handling over 90,000 components. The pilot demonstrated that humanoid robots could perform high-precision tasks reliably and safely in a live production setting. It also highlighted the importance of early collaboration with teams responsible for IT infrastructure, safety and logistics. Seamless integration into the existing automation ecosystem was achieved through standardised interfaces, and employee reception was notably positive, aided by transparent communication from the outset.

The success of these initial deployments has paved the way for further collaboration. BMW and Figure are currently exploring additional applications for the next-generation Figure 03 robot, continuing to build on the foundation established in both United States and Europe.

Milan Nedeljković, Member of the Board of Management of BMW AG, Production, said, “Digitalisation improves the competitiveness of our production – here in Europe and worldwide. The symbiosis of engineering expertise and artificial intelligence opens up entirely new possibilities in production,”.

Michael Nikolaides, Senior Vice President Production Network, Supply Chain Management at BMW Group, said, “Our aim is to be a technology leader and to integrate new technologies into production at an early stage. Pilot projects help us to test and further develop the use of Physical AI – that is, AI‑enabled robots capable of learning – under real-world industrial conditions. The successful first deployment of humanoid robots at our BMW Group plant in Spartanburg in the USA proves that a humanoid robot can function not only under controlled laboratory conditions but also in an existing automotive manufacturing environment.”

Michael Ströbel, Head of Process Management and Digitalisation, Order to Delivery at BMW Group, said, “We are delighted to deploy a humanoid robot for the first time in a pilot project at a plant in Germany. Following evaluation by our Center of Competence for Physical AI in Production, tests were carried out in the laboratory and at Plant Leipzig at the end of last year. This year, our focus is on step‑by‑step integration into our production system to explore a wide range of applications. The emphasis is on researching multifunctional use of the robot in various production areas such as battery manufacturing for energy modules and component production for exterior parts. With Hexagon, we have found a proven long‑standing partner with a highly innovative approach to humanoid robotics for this project.”

Felix Haeckel, Team Lead CoC Physical AI for Production, said, “At our new Center of Competence for Physical AI in Production, we are pooling our expertise to make knowledge on AI and robotics widely usable within the company. In recent years, we have built up an international team of experts that, in addition to in‑house research and programming, is dedicated to the gradual integration of AI into the existing production system. At the same time, our team in Munich is driving its own robotics research to set up, support and further develop pilot projects in the field of Physical AI at our plants.”

Arnaud Robert, President of Hexagon Robotics, said, “We are very pleased to be working with the BMW Group to advance the use of humanoid robots in real‑world environments.”

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