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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HMC E-Valley (HIVE) and KPIT Technologies have signed a Memorandum of Understanding (MoU) to establish an Independent Centre of Excellence (CoE) in Delhi-NCR. The facility will provide design and engineering services for global micromobility and L-category electric vehicle (LEV) manufacturers, including those producing e-bicycles.

The partnership targets the multimodal mobility market, specifically first-mile and last-mile connectivity solutions such as e-scooters. Industry data indicates that over 50 percent of current travel occurs within these last-mile segments.

The collaboration combines manufacturing and software expertise to develop LEV platforms.

As per the understanding, HIVE will manage business development, client engagement, prototyping and manufacturing enablement. While KPIT will lead solutioning, engineering delivery, programme management, design and software systems integration.

The CoE is designed to create end-to-end capabilities for the LEV segment, utilising KPIT’s mobility technology and HIVE’s manufacturing and supply chain infrastructure.

Pankaj M Munjal, Chairman, Hero Motors Company, said, “The light electric vehicle industry is at a pivotal juncture, demanding a fusion of cutting-edge hardware and smart software. This partnership with KPIT is a powerful convergence of those forces, signifying HIVE’s deep commitment to redefining urban mobility by delivering the next generation of high-quality, sustainable micromobility solutions globally.”

Kishor Patil, CEO & Managing Director, KPIT Technologies, said, “The future of mobility, even at the micromobility level, is defined by intelligent software and seamless systems integration. KPIT’s deep domain expertise in mobility technology will be crucial in equipping the Center of Excellence to develop world-class, cost-effective, and safe LEV platforms. We are excited to combine our software leadership with HIVE’s manufacturing excellence to accelerate the journey toward safer, smarter, and cleaner transportation.”

The agreement aims to accelerate the development of LEV solutions for the global market by integrating AI-driven mobility software with scalable manufacturing.

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Harman International, a subsidiary of Samsung Electronics, has entered into a definitive agreement to acquire the Advanced Driver Assistance Systems (ADAS) business from ZF Group for EUR 1.5 billion.

The acquisition includes ZF's automotive compute solutions, cameras, radars and ADAS software. Approximately 3,750 employees across Europe, the Americas and Asia are expected to transfer to Harman upon completion of the deal, which is scheduled for the second half of 2026.

The move is part of Harman’s strategy to transition towards software-defined vehicles (SDV). By combining ZF’s ADAS technology with its own digital cockpit products, Harman aims to develop centralised compute platforms. This architecture is intended to link safety and assisted driving functions with in-vehicle connectivity and intelligence on a shared platform.

The integration is designed to reduce system complexity for car manufacturers (OEMs), allowing for more efficient innovation cycles and the scaling of context-aware vehicle experiences.

Christian Sobottka, CEO and President, Harman’s Automotive Division, said, “The industry is at an inflection point where safety, intelligence, and in-cabin experience must come together through a unified computing architecture. With this agreement, we take a strategic step to expand our portfolio with complementary ADAS capabilities that unlock a new class of cross-domain experiences ranging from perception-informed audio cues to more personalized, situation-aware driving. Combined with Harman’s long-standing automotive expertise and supported by Samsung’s broader technology leadership, this positions us to help OEMs design the next generation of intelligent, empathetic, and connected vehicles.”

Mathias Miedreich, CEO, ZF Group, said, “With Harman, we have found the ideal partner to fully unlock the growth and innovation potential of our ADAS business. At the same time, this deal makes an important contribution to reducing our company’s debt and allows us to focus our resources on the core technologies in which ZF is a global leader.”

Young Sohn, Chairman of the Board at Harman, added, “Since acquiring Harman in 2017, the company has scaled its automotive and audio business from USD 7 billion to more than USD 11 billion today. Adding ZF’s ADAS capabilities builds on that momentum. Harman will further expand its technology foundation to deliver safer, more intelligent, and more intuitive in-vehicle experiences. This acquisition reinforces Harman’s leadership in the industry’s transformation and underscores Samsung’s long term commitment to the future of mobility.”

Following the close of the transaction, Harman will align its engineering and ADAS teams to accelerate the development of next-generation platforms. The companies have committed to maintaining support for existing programmes during the transition period. Carolin Reichert, Chief Strategy Officer of HARMAN, noted that the deal represents a ‘major milestone’ and demonstrated the company's ability to execute a ‘complex carve-out.’

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Pioneer Corporation has announced it will unveil Pioneer Ride Connect, a user experience (UX) solution for motorcycles, at CES 2026 in Las Vegas. The system is designed for the production of connected clusters and relies on software updates to provide features to riders.

The solution is the result of a technology collaboration with HERE Technologies. It integrates the HERE SDK, a cloud-based mapping and navigation kit covering more than 120 countries, to provide location-based services for the global two-wheeler market.

Pioneer Ride Connect incorporates several technologies intended to manage hardware costs and smartphone battery life:

• BLE-based Screen Projection: The system uses Bluetooth Low Energy (BLE) to project map images and service information from a smartphone onto the onboard cluster. This method reduces the processing power required by the motorcycle's hardware and lowers smartphone power consumption.
• HMI and AI Integration: The platform features Voice Tap, a voice-based Human-Machine Interface (HMI) for hands-free operation. Edge AI is used to share real-time traffic, weather and hazard data.
• Global Navigation: Through the HERE SDK integration, the system provides routing and traffic information optimised for motorcycles. It includes an offline mode for use in areas with limited network connectivity.

The development follows a partnership between Pioneer and HERE Technologies established in December 2024. The HERE SDK allows for the development of location-aware applications featuring routing and geocoding services across Android, iOS and Flutter platforms.

Pioneer stated that the integration of these technologies serves as a foundation for providing connected services to two-wheeler manufacturers and riders globally.

Seiji Tanezawa, Executive Officer of Pioneer, in charge of business development and strategic alliances, said, “Pioneer Ride Connect is a revolutionary platform that continuously provides software-based upgrades to motorcycles’ UX. By combining Pioneer’s industry-leading expertise in designing a compelling UX with HERE Technologies’ globally accessible Location Intelligence platform, Pioneer Ride Connect transforms the concept of smarter and safer connected two-wheelers into a tangible reality. I’m delighted to unveil our leading-edge technology and ambitious vision at the upcoming CES 2026.”

Deon Newman, Senior Vice-President & General Manager, Asia Pacific, HERE Technologies, said, "Pioneer’s ‘Ride Connect’ brings a smarter, safer motorcycle experience to life - and we’re proud to power it with HERE SDK. Together, we’re making connected services accessible to riders across global markets, with reliable navigation and motorcycle‑optimised routing that work in dense cities to remote mountain roads. It's a meaningful step forward for connected mobility.”

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Kinetic Watts & Volts (KWV), the electric mobility arm of Kinetic Engineering, has entered a technology partnership with Jio Things, a subsidiary of Jio Platforms.

The collaboration will integrate voice-assisted controls, IoT-enabled digital clusters and connected vehicle technologies into Kinetic’s upcoming electric two-wheeler range.

The partnership aims to deploy a suite of digital features for Indian riders, utilising Jio’s IoT ecosystem, which includes hardware, cloud infrastructure and device management.

The collaboration will introduce several capabilities to the Kinetic EV platform:

• Voice Assistance: Interaction for vehicle functions.
• Smart Clusters: Digital instrument panels providing real-time data and infotainment.
• Telematics: Cloud-based analytics for performance monitoring and diagnostics.
• Fleet Management: Tools for commercial operators to track and manage vehicle assets.

The connected platform will be embedded across future KWV models to provide a standard digital experience across different customer segments.

Ajinkya Firodia, Vice-Chairman & Managing Director, Kinetic Watts & Volts, said, “Kinetic has always stood for democratizing mobility and innovation. With this partnership, we now extend that commitment into digital mobility, bringing voice assistance and connected features to everyday riders, so technology becomes truly intuitive and useful. This collaboration also stays true to our motto of ‘Easy’ a philosophy already visible in practical features such as Easy Key, Easy Flip and Easy Charge; and now strengthened with seamless digital experiences that simplify ownership for our customers.”

Ashish Lodha, President, Jio Platforms, said, “Our partnership with Kinetic exemplifies our vision to build a truly connected automotive ecosystem in India. By bringing Jio’s voice assistance and IoT capabilities to the two-wheeler segment, we are not just upgrading vehicles; we are redefining the interaction between man and machine, bringing the benefits of smart mobility to every Indian rider.”

The partnership seeks to combine Kinetic’s manufacturing experience with Jio’s digital infrastructure to make connected electric vehicles more accessible. Objectives include improving rider safety, increasing digital uptime and providing data analytics for fleet operators.

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