Chinese automakers continue to be excluded from direct operations in India, but their electric vehicle (EV) technology is entering the country's automotive market through licensing and supply agreements, according to a local daily report.

India has largely restricted the entry of Chinese companies since 2020, while Beijing has also tightened controls on the export of technological know-how. Despite this, industrial engagement between the two countries is increasing, the report stated.

Tata Motors stated earlier in June that it would use a manufacturing platform from China's Chery to produce premium electric vehicles in India. According to the report, the arrangement does not involve an equity stake, and both companies have described it as a supply agreement that does not transfer technology know-how to Tata, reflecting the political sensitivities surrounding such collaborations.

India increased scrutiny of Chinese companies following a border clash between the two countries in 2020. While both governments have sought to improve relations, tensions remain in certain areas. A partner at a law firm, said that closer industrial engagement between India and China is likely if both countries aim to meet their economic and manufacturing objectives.

For Tata Motors, India's third-largest carmaker, the Chery platform provides a faster route to launching electric vehicles, the report stated. The company is expected to shift from importing kits from China to local component manufacturing, a transition that some Indian officials reportedly view as supportive of domestic production.

An unnamed senior Indian government official told that agreements encouraging local manufacturing or gradual supply-chain development are considered a structured approach to engagement with China.

For Chinese automakers facing slowing domestic demand and excess production capacity, such arrangements may provide an opportunity to generate revenue within existing export restrictions, according to the report. Tata Motors and Chery did not respond to requests for comment.

Growing market attracts wider interest

The Tata-Chery arrangement indicates that India has not fully insulated its automotive sector from China's electric vehicle industry, the report noted. It suggested that this trend could create challenges for Japanese and other foreign automakers investing in India due to limited direct competition from Chinese firms so far.

An independent analyst, told a local daily that Chinese EV manufacturers recognise the strategic importance of establishing a presence in India through supply partnerships, adding that other countries would likely fill the gap if Chinese firms did not participate.

The report stated that Chinese partnerships are increasingly emerging in sectors historically dominated by Japanese, South Korean and European companies, often offering technologies that analysts describe as lower-cost and quicker to deploy.

As an example, Indian component manufacturer Uno Minda has formed a joint venture with China's Inovance to produce electric vehicle powertrains in India, a segment in which Bosch, Nidec and Aptiv are already active, according to the report.

Battery technology cooperation disrupted

According to the report, technology licensing agreements between India and China increased after the 2020 investment restrictions, although the process has faced setbacks. In 2025, Chinese export-control measures introduced in response to United States tariffs led Indian battery manufacturer Amara Raja to terminate its licensing agreement with China's Gotion for lithium-ion electric vehicle battery cell technology.

Amara Raja Executive Director Vikramadithya Gourineni stated that all technical collaboration under the agreement had ended, although the company had gained experience in factory design, technology planning and vendor networks before the termination of the deal.

Following the end of the licensing arrangement, Amara Raja has increased investment in in-house research and talent development, Gourineni said. The company continues to import equipment, battery cells and materials from Chinese suppliers to support its cell manufacturing plans but has faced difficulties in securing sufficient visas for Chinese engineers required for operational support, according to the report.

Chery's other Indian partnership

News report also stated that JSW Motor, the automotive venture of businessman Sajjan Jindal, agreed last year to a similar arrangement with Chery. Under the agreement, JSW secured rights to use and adapt multiple Chery platforms to develop hybrid and electric vehicles for the Indian market, according to people familiar with the matter cited in the report. The deal reportedly includes an upfront payment of about Rs. 20 billion (approximately US$ 209 million), along with royalty payments.

JSW Motor, which is investing US$ 3 billion in the venture, is targeting sales of 300,000 vehicles by 2030, according to the sources. Initial models are expected to arrive largely as imported kits from China, with JSW gradually developing a local supply chain and expanding production at its manufacturing facility in western India.

JSW Motor and Chery did not respond to requests for comment. The independent analyst stated that these developments highlight the role of a measured approach to India-China industrial engagement, rather than a complete cessation of cooperation.