Chinese automotive brands are increasingly targeting India's premium and luxury vehicle segments, with BYD's Denza sub-brand pricing products between ₹1 crore and ₹1.5 crore, and JSW's Combat — developed in partnership with Chery — positioned around the ₹40 lakh mark.
Speaking on the latest episode of Autocar India's Deep Drive podcast, Hormazd Sorabjee and Sergius Barretto discussed how Chinese carmakers have moved from being associated primarily with low-cost products to competing with established premium brands on design, features and performance.
When SAIC-owned MG Motor launched the Hector in 2019, the company downplayed its Chinese origins and marketed the product as a British brand. Consumer perception of Chinese-made vehicles at the time was largely negative, associated with poor quality and imitation designs. The hosts noted that Chinese management was reportedly asked not to attend the Hector's launch events for this reason.
The change in strategy is partly driven by geopolitical and regulatory constraints. Indian government restrictions on Chinese foreign direct investment, introduced following the 2020 Galwan Valley border clashes, have made it difficult for Chinese automakers to set up or expand local manufacturing. Technology transfer restrictions have further complicated joint venture arrangements. Plans by Stellantis to bring Leap Motor into India and a reported Nissan-Dongfeng partnership have both stalled as a result.
Unable to scale through local production, brands such as BYD have pivoted to the fully built unit (CBU) import route, concentrating on higher-priced vehicles where margins can absorb import duties. BYD sold over 5,000 units in India between January and August 2025, making it the top-selling CBU brand in the country. Of those units, fewer than 100 were reported to be commercial cab purchases, indicating strong private buyer demand. The brand currently ranks sixth overall among electric vehicle sellers in India.
MG Motor, which has an established manufacturing presence in India, has pursued a parallel premium channel called MG Select, through which it sells models such as the Cyberster and M9. The Cyberster, a convertible EV with scissor doors priced under ₹1 crore, has sold over 600 units — a notable figure for a niche segment. The Select division is reported to be the most profitable part of MG Motor India's operations.
The trend extends beyond brands of Chinese origin. BMW India imports painted body shells from China for its i5 Long Wheelbase model, assembling the vehicles locally without a paint shop. This arrangement lowers costs but limits engineering adaptations for the Indian market — the i5 cannot be offered with a diesel engine, as diesel powertrains are not produced in China, and rear sunshades cannot be retrofitted into the pre-painted shells.
Industry observers point to several factors behind the improvement in Chinese vehicle quality. Companies like BYD have vertically integrated their supply chains, including battery and semiconductor production, and have established procurement relationships with established European component suppliers. Mechanical reliability, however, remains a noted gap relative to Japanese and German manufacturers, according to industry reliability studies.
Chinese brands now account for upwards of 5% of the European automotive market, driven largely by EVs — a penetration level that reflects their growing global reach.
Looking ahead, analysts do not expect a large wave of new Chinese brands entering the Indian market under current conditions. The most likely near-term trajectory is continued CBU imports at premium price points, with MG Motor remaining the largest Chinese automotive footprint in India by volume. Any easing of investment restrictions — including diplomatic developments following recent meetings between the Indian and Chinese heads of government — could alter that outlook.