Chinese automakers continue to be excluded from operating directly in India, but their electric-vehicle technology is making inroads into the country's car market through licensing and supply arrangements, according to a Reuters report.
India has largely kept Chinese companies out of its market since 2020, and Beijing has since tightened controls on exporting its technological know-how. Even so, industry ties between the two countries are deepening, Reuters reported.
Tata Motors said earlier in June that it would use a manufacturing platform from China's Chery to produce premium EVs in India. According to Reuters, the arrangement does not involve an equity stake, and both companies have described it as a supply deal that does not transfer technology know-how to Tata — a distinction seen as reflecting the political sensitivities involved.
India increased scrutiny of Chinese businesses after a deadly 2020 border clash between the two countries. While the two governments have been working to improve relations, friction persists in some areas.
Santosh Pai, a partner at law firm Dentons Link Legal, told Reuters that closer industrial ties between India and China are likely unavoidable if both sides want to meet their respective economic and manufacturing ambitions.
For Tata, India's third-largest carmaker, the Chery platform offers a faster route to launching EVs, Reuters reported. The company is expected to eventually move from importing kits from China to building components locally — a shift that some Indian officials reportedly view favorably, as it would support domestic manufacturing.
An unnamed senior Indian government official told Reuters that deals encouraging local manufacturing or supply-chain development over time are viewed as a constructive approach to engaging with China.
For Chinese carmakers facing a slowdown at home and excess production capacity, such arrangements may offer a way to grow revenue without breaching Beijing's export restrictions, according to the report. Tata and Chery did not respond to Reuters' requests for comment.
Growing market draws wider interest
The Tata-Chery deal illustrates that India has not been able to fully insulate itself from China's EV sector, Reuters noted. The report suggested this trend could pose challenges for Japanese and other foreign automakers investing heavily in India, partly because they have so far faced limited competition there from Chinese rivals.
Gao Hua, a former director at China SAE and now an independent analyst, told Reuters that Chinese EV makers recognize the strategic value of establishing a presence in India through supply partnerships, noting that other countries would likely fill the gap if Chinese firms did not.
Reuters reported that Chinese partnerships are increasingly appearing in sectors historically dominated by Japanese, Korean and European firms, often offering technology seen by analysts as cheaper and quicker to deploy.
As one example, Indian component maker Uno Minda has formed a joint venture with China's Inovance to manufacture EV powertrains in India — a segment where Bosch, Nidec and Aptiv already operate, according to the report.
Battery technology cooperation disrupted
According to Reuters, technology-licensing deals between India and China gained momentum following the 2020 investment restrictions, though the process has not been without setbacks.
In 2025, Chinese export-control measures introduced in response to U.S. tariffs led Indian battery maker Amara Raja to end its licensing agreement with China's Gotion for lithium-ion EV battery cell technology, Reuters reported.
Amara Raja's executive director, Vikramadithya Gourineni, told Reuters that all technical collaboration under the deal had ceased, though the company had gained useful knowledge on factory design, technology planning and vendor networks before the deal ended.
With the licensing arrangement no longer viable, Amara Raja is increasing investment in in-house research and talent, Gourineni said. The company continues to import equipment, battery cells and materials from Chinese suppliers to support its cell-manufacturing plans, but has faced difficulty securing enough visas for Chinese engineers to provide operational support, according to the report.
Chery's other Indian partnership
Reuters also reported that JSW Motor, the maiden carmaking venture of billionaire Sajjan Jindal, agreed last year to a similar partnership with Chery.
Under the agreement, JSW secured rights to use and adapt several Chery platforms to build hybrid and electric vehicles for the Indian market, according to people familiar with the matter cited by Reuters. The deal reportedly involves an upfront payment of about 20 billion rupees (roughly $209 million) plus royalties.
JSW, which is investing $3 billion in the venture, is targeting sales of 300,000 vehicles by 2030, the sources told Reuters. Initial vehicles are expected to arrive largely as imported kits from Chery, with JS W gradually developing a local supply chain and expanding production at its factory in western India, they said.
JSW Motor and Chery did not respond to Reuters' requests for comment.
Gao told Reuters the developments underscore the value of a measured approach to India-China industrial ties, rather than a complete severing of cooperation.