The Road Ahead For Chinese Automakers In India?

The Road Ahead For Chinese Automakers In India?

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

    ZF Advances Automotive Data Transmission With Optical Multi-Gigabit Ethernet

    ZF ProAI

    German technology company ZF has upgraded its ProAI high-performance computer to support optical multi-gigabit Ethernet for automotive applications, complying with the IEEE 802.3cz standard.

    The system uses automotive-grade optical fibres, enabling data transmission speeds of 2.5 to 50 Gbit/s over distances up to 40 metres. The series production could begin as early as 2025.

    Oliver Briemle, Head of Cross-Domain Computing at ZF, said, “Ultra-fast optical transmission is critical for software-defined vehicles. This technology supports high-bandwidth applications like autonomous driving and infotainment.”

    The company claims that the key advantages of optical multi-gigabit ethernet include – 

    • Higher Speeds – Supports 25G/50G data rates, essential for ADAS and IVI systems.
    • Extended Range – Reliable transmission up to 40 metres in vehicles.
    • Weight Reduction – Fiber optics are lighter than copper, improving efficiency.
    • EMI Immunity – Immune to electromagnetic interference, ensuring stable performance.
    • Energy Efficiency – Lower power consumption than copper-based systems.
    • Scalability – Future upgrades won’t require cabling changes.
    • Cost-Effective – Uses mass-produced OM3 fibres and VCSEL laser diodes.
    • Low Latency – Simplified signal processing reduces delays.

    While older automotive systems like MOST relied on polymer fibres, IEEE 802.3cz-2023 adopts glass fibres for higher bandwidth and lower signal loss.

    ZF shared that its solution is validated for cars, trucks and buses, ensuring robustness across vehicle types. With automakers shifting toward software-defined architectures, ZF’s optical Ethernet technology aims to meet growing data demands while cutting weight and energy use.

    Comments (0)

    ADD COMMENT

      SIAM’s 19th Styling & Design Conclave Sees Discussion On Innovation, AI & Sustainability

      SIAM 19th Styling & Design Conclave

      Innovation and sustainability in design took centerstage at the 19th Styling & Design Conclave 2025 organised by the Society of Indian Automobile Manufacturers (SIAM). The event saw participation from designers and professionals from organisation such as Hero MotoCorp, Maruti Suzuki India, Honda Motorcycle & Scooter India, Stratasys and Autodesk among others.

      G Sathiyaseelan, Chairman, SIAM Styling and Design Group and Vice-President, Ashok Leyland, shared his views on empathetic, inspirational and innovative approach towards technology and design,

      Anuj Prasad, CEO and Founder, Desmania, expressed confidence in the bright future for automotive designers.

      The event saw speakers acknowledging that automotive styling has become an old word, while design and sustainability are the modern buzzwords that indicate the direction in which the automotive sector must head.

      “The level of design happening in India holds tremendous potential. We are at the threshold of a new era in design and innovation. Today, international organisations are looking to India for designs that cater to both local and global markets. Automotive design will help build the nation in a responsible manner,” said Prasad.

      Prashant Banerjee, Executive Director, SIAM stated that “Indian automotive designs today are as good as Italian designs.”

      Samarth Gupta, Senior Technical Specialist & Mobility Lead APAC, Autodesk, said, “Everyone wants to own a vehicle because it is an expression of independence. The urban population landscape is changing due to climate change. New developments in geopolitics and the evolution of consumers’ trends and preferences are impacting the mobility landscape. We will need to evolve our auto design thinking amidst disruptions.”

      Teofilo Plaza Garcia, Industrial Studio Head, Hero MotoCorp, said “Motorsports-based designs can be used for road-based vehicles, as indicated through Hero XPulse 210. These vehicles will no longer be as expensive as before.”

      Rahul Pandita, Regional Head, Stratasys, stated that 3D block printing is a useful technique that has helped companies like McLaren bring racing designs to life quickly. “As design processes such as 3D block printing decrease the time taken, companies can quickly decipher whether a design is feasible or not,” said Pandita.

      Dinesh Raman, Director, Transportation Design, KISKA Shanghai, opined that “As the years go by, greater use of AI will be made for design, thereby freeing up time for creative pursuits by automotive designers.”

      VS Deka, Group Manager, Royal Enfield, said, “AI innovation is coming into our lives and we need to adopt the evolving technology. AI can be customised through training and then be scaled up as per requirements.”

      Ferdinand Klauser, Global Partner & MD, Asia, KISKA Shanghai said, “India has a lot of potential in bringing about the transformation in mobility designing landscape.”

      He also mentioned that though the future is unpredictable, it is possible to plan for it by understanding that consumer needs are transforming faster than the market.

      Professor Kaustuv Sengupta of NIFT Chennai, stated, “Colour represents around 20 percent of the design language. Every 300 miles in our country, you see a new colour context. Human beings see a small spectrum of colours. Colours affect us psychologically. We see what we want to see.”

      Rajesh Gogu, Vice-President (Design), Maruti Suzuki India, revealed that the company decided to create a completely new design for the fourth generation of the Dzire. The design became a success despite a 55 percent market share for SUVs.

      “The trends on the road are changing, as demand for sedans have reduced while that of SUVs have grown. Designing can reinvent declining segments or products to make them popular again. Innovation is not just about technology, it is also about shape, form, aerodynamics, performance and more. We can design our vehicles that can reduce the carbon footprint offering better fuel efficiency and value to customers,” averred Gogu.

      While describing the role of AI in automotive designing, Harikrishnan AK, Delivery Manager, TCS Design, said, “AI image generators can be used for inspiration, exploration and for happy accidents but there are challenges of confidentiality and originality. We need to harness the full potential of AI by customisation and fine-tuning.”

      Speaking about designing in the commercial vehicle segment, Pravin Gaikwad, Head of CV Design, Tata Motors, said, “We have adopted multi-powertrain strategy. It is possible for the form to get you the trust of the customer. Form is actually helping us to define many ideas. We are leveraging tech intelligence like telematics to design something very unique.”

      He shared an insight on how Tata Motors was using space intelligence as a new design direction for making Tata Prima trucks and a new space-saving concept called Tata YU.

      The SIAM Styling and Design Conclave also presented automotive design students of MIT (Maharashtra Institute of Technology), ADYPU (Ajeenkya DY Patil University) and NID (National Institute of Design) an opportunity to present their design prototypes. Vedant Barve, a student at MIT, won the first prize for an electric cruiser scooter concept.

      “When we began, India had only two design schools. Today, there are over 1,500 design schools producing a strong talent pool for automotive design. We need to be transformative and move toward defining automotive design that is human-centric and sustainable,” added Prasad of Desmania.

      “To make India into a global design hub, change that helps India use aspects of its culture while competing at a global level is needed in the academic curriculum,” concluded Sumer Singh, Associate Professor, IIT Delhi.

       

      Comments (0)

      ADD COMMENT

        Continental’s Ac2ated Sound Display Turns Vehicle Display Into High-Quality Audio Speaker

        Continental Act2ated

        German tier 1 supplier Continental has announced its latest solution for the automotive industry, the Ac2ated Sound display, a first-of-its-kind in the industry that uses a display surface to bring high-quality audio output.

        The technology will not only enable space saving but also could enable significant weight reduction and allow for more innovative solutions to be integrated.

        The Ac2ated system uses actuators installed behind the display surface and induce audible vibrations in the glass. The company stated that humans have an intuitive ability to identify the origin of a detected sound in a three-dimensional space, which is referred to ‘sound localisation’. In simple terms, humans, when hearing any sound, have a natural tendency to try and identify the source of the sound. In the automotive industry, the Ac2ated Sound display can create a more immersive experience as the display itself could be used like a sound box.

        Given the smaller footprint of the actuators, the solution can be implemented in various flat components of the vehicle interiors.

        Continental claims that Ac2ated Sound system requires up to 90 percent less space and can offer up to 40 kilograms of weight saving compared to conventional speaker systems.

        Pavel Prouza, Head of User Experience (UX) Business Area, Continental, said, “By integrating actuators into the display, we have succeeded in using the entire display surface as a sound chamber to resonate sound within the vehicle – all in exceptional quality. Not only does this save valuable space in the vehicle interior, but it also reduces weight compared with traditional speakers. The system leverages our full expertise as a system integrator for the benefit of our customers – combining visual and audio output in a single package without compromising on quality.”

        Comments (0)

        ADD COMMENT

          TVS Supply Chain Solutions Appoints R Vaidhyanathan As New CFO

          R Vaidhyanathan

          TVS Supply Chain Solutions, a global supply chain solutions provider, has announced changes to its leadership structure with the appointment of R Vaidhyanathan as its new Global Chief Financial Officer (CFO) effective 1 April 2025. He succeeds Raviprakash Bhagavathula, who will transition to the new role of Head of Strategic Initiatives and move to Singapore.

          At present, Vaidhyanathan serves as Deputy Global CFO and has held various positions in Finance within the organisation. He had joined the company in January 2019 and has worked across various leadership financial roles the position, and is credited to play a key role in significant enhancements to the productivity of the finance function.

          Ravi Viswanathan, Managing Director, TVS Supply Chain Solutions, said, “We are delighted to appoint R Vaidhyanathan as our new Global CFO. His strong track record in driving financial performance, optimising cash flow, and fostering a culture of operational excellence has been instrumental in our growth journey. I am confident that his deep understanding of our business and his strategic vision will help us continue to innovate and scale as we move into the next phase of growth journey. We also express our sincere gratitude to Raviprakash Bhagavathula for his invaluable contributions since 2018 as CFO, especially for leading TVS SCS to a successful public listing. We look forward to his leadership in driving our strategic initiatives.”

          Both Vaidhyanathan and Bhagavathula will report to Ravi Viswanathan, MD, TVS Supply Chain Solutions.  

          Comments (0)

          ADD COMMENT