Why are Chinese EV makers banned from selling cars directly in India, yet their technology is still entering the Indian market?

Chinese automakers are largely blocked from entering India's car market since 2020 due to heightened scrutiny following a deadly border clash between Indian and Chinese troops; however, Indian companies like Tata Motors are partnering with Chinese firms such as Chery to use their carmaking platforms for local EV production — structured as supply arrangements without equity stakes or direct technology transfer to navigate political sensitivities.

What is the significance of Tata Motors' deal with Chery for India's EV ambitions and industrial policy?

Tata Motors' use of Chery's carmaking platform enables faster EV launch timelines while aligning with India's goal of boosting domestic manufacturing — Tata plans to shift from importing Chinese kits to developing components locally, a strategy supported by Indian policymakers as it advances supply-chain localization and strengthens India's role in the global automotive supply chain.

Chinese EV Makers Shut Out of India - But Their Tech Isn't

Jun 23, 2026

Despite trade barriers, Indian automakers Tata Motors and JSW Motor are partnering with China's Chery for EV platforms and technology. However, battery licensing deals face restrictions due to geopolitical tensions, impacting supply chain cooperation.

reuters

2026-06-23

Chinese EV Makers Shut Out of India - But Their Tech Isn't

Chinese EV Makers Shut Out of India - But Their Tech Isn't

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