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.    

Comments (0)

ADD COMMENT

Link Copied!

Cars24 has signed a Memorandum of Understanding (MoU) with the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, to support India's startup ecosystem through initiatives focused on artificial intelligence, mobility, and road safety.

As per the agreement, Cars24 will establish structured programmes for early-stage founders, granting access to its infrastructure, mentor network, funding sources, market connections and technical resources. In turn, the DPIIT will facilitate national outreach and ecosystem integration via the Startup India platform, supporting knowledge exchange, co-branding and policy engagement.

The partnership encompasses five specific areas of operation: mentorship for early-stage founders via the Cars24 Founders' Fellowship, training through Mobility and Autotech Skilling Programmes, technical support and AI integration via Cars24 Labs, investor connections through Fuel by Cars24 and the organisation of an annual Innovation Challenge and Road Safety Hackathon alongside the DPIIT.

Vikram Chopra, Builder, Cars24, said, “Cars24 is proof that Indian founders can start with a difficult, everyday problem and build something on a national scale. We want to pass that possibility on. Through this partnership with DPIIT, we are backing the next generation of builders with more than advice. We want to give them access, capital, talent and a real platform to test ideas that can make India move smarter and safer.”

A senior DPIIT official commented, “Industry participation is central to strengthening India’s startup ecosystem. Collaborations of this kind, where an established market leader opens up its scale, mentorship and resources to early-stage founders, are exactly the bridge between ambition and execution that young startups need. We welcome Cars24’s commitment to mentoring, skilling and supporting product startups across the country.”

The non-binding MoU establishes a framework for ongoing collaboration between both entities to foster technology adoption and entrepreneurship within the Indian mobility sector.

Comments (0)

ADD COMMENT

Link Copied!

NXP Semiconductors has announced that the BMW Group will deploy its Trimension NCJ29D6 Ultra-Wideband (UWB) family across its vehicle fleet, beginning with selected 2026 production programmes.

The hardware component integrates fine-ranging capabilities with short-range radar functionality on a single chip. This allows vehicle manufacturers to utilise a single system for multiple applications, including hands-free vehicle entry and occupant presence detection.

The integration supports BMW’s Digital Key Plus feature, which enables vehicle owners to substitute key fobs with smartphones or smartwatches. The system manages locking and unlocking functions as the user approaches or moves away from the vehicle. Additionally, the technology includes in-cabin radar monitoring designed to identify motion patterns consistent with occupants or animals left inside a parked vehicle, sending notification alerts to users to align with European and Chinese NCAP assessment protocols.

Markus Staeblein, Senior Vice-President and General Manager, Secure Car Access at NXP Semiconductors, said, “NXP’s proven Trimension UWB platform maximises value for OEMs, using a single system to deliver multiple new and differentiating features for drivers. Digital key and presence detection are just the beginning. OEMs will be able to deliver additional UWB-based features, such as kick sensing, intrusion alert or automatic charging, as they establish the secure hardware platform in their vehicles.”

Comments (0)

ADD COMMENT

Link Copied!

Envalior India, an engineering materials company formed through the merger of DSM Engineering Materials and LANXESS High Performance Materials, will inaugurate the Envalior Centre of Excellence in Electric Vehicle Technology on 5 August 2026 as part of its corporate social responsibility (CSR) program.

The CoE located at Marathwada Mitra Mandal's Polytechnic in Pimpri-Chinchwad, Pune, will be implemented by the BroadArks Foundation to provide vocational training in electric vehicle systems.

It plans to train 250 individuals annually through two courses: a Level 4 Certificate in EV Service, Safety & Maintenance and a Level 5 Advanced Certificate in EV Diagnostics & Systems.

The curricula align with the National Skills Qualifications Framework and carry certification support from the Confederation of Indian Industry. The programs target students from Industrial Training Institutes and polytechnics studying mechanical, electrical, electronics, mechatronics and computer science disciplines.

Training instruction covers classroom coursework and laboratory modules focused on vehicle architecture, battery management systems, charging infrastructure, thermal management, power electronics, diagnostics and workshop safety protocols. Practical assessments and industry projects form part of the curriculum structure.

Nileshkumar Kukalyekar, Business Director – South Asia, Middle East & Africa, Envalior, said, "The launch of the Envalior Centre of Excellence reflects our commitment to supporting India's transition towards electric mobility by investing in the people who will power it. Through this Centre, we aim to provide students with industry-aligned, hands-on training that prepares them for the evolving demands of the EV sector while contributing to a stronger and future-ready workforce."

In addition to student instruction, the facility is designed to support laboratory infrastructure and instructor development programs for technical education in the region.

Comments (0)

ADD COMMENT

Link Copied!

South Korean auto major Hyundai Motor Group has appointed Junghyun Kwon as Executive Vice-President and Head of the Autonomous Driving Development Center.

Kwon will oversee software engineering, deep learning integration, perception systems and commercialisation pathways for the group's autonomous mobility programs, reporting directly to Minwoo Park, President and Head of the Advanced Vehicle Platform (AVP) Division.

He joins the group following technical management roles in software development and artificial intelligence across international technology firms. Kwon previously managed autonomous driving software development and deployment at NVIDIA before directing intelligent robotics development at Samsung Electronics. His technical background covers machine learning models, computer vision systems and vehicle perception frameworks.

The executive appointment forms part of a broader recruitment sequence targeting software-defined vehicle architectures and autonomous driving systems.

Earlier in July, Hyundai Motor Group appointed Dongwuk Kim as Senior Vice-President and Head of the SDV Platform Development Center, following his work on wireless communication systems for mobile devices, robotics and vehicles at Apple and Tesla. The group also added Jeremy Ma as Senior Vice-President and Head of AVP Silicon Valley, drawing on his experience in robotics and autonomous systems at Apple, Toyota Research Institute and NVIDIA.

Comments (0)

ADD COMMENT

Link Copied!