Kuaikeji, June 25 - According to reports, India, as the world's third-largest automotive market, is projected to sell 4.489 million passenger vehicles and 1.027 million commercial vehicles by 2025, with total motor vehicle sales reaching 26.8 million, up 5% year-on-year, indicating significant market growth potential. India's car ownership per thousand people stands at only 34, compared to China's approximately 260, highlighting substantial market growth potential. Despite multiple rounds of investment restrictions on China since 2020, India has failed to prevent the establishment of China's new energy supply chain in the country.

At the policy level, India has tightened capital access reviews for Chinese investments since the 2020 border incidents, significantly raising the barriers for direct investment in complete vehicle (complete vehicles) and large-scale joint venture projects. Industry data shows a rigid demand for upgrading India's local manufacturing and improving its electric vehicle supply chain. China's complete three-electric (battery, motor, controller) supporting capabilities offer cost and implementation speed advantages, making industrial cooperation between the two sides objectively necessary.

There are two typical examples of such cooperation:

First, Indian component company Uno Minda formed a joint venture with Inovance Technology to locally produce electric vehicle powertrains, a sector previously monopolized by foreign companies such as Bosch, Nidec, and Aptiv. Second, Indian battery manufacturer Amara Raja once engaged in lithium-ion technology licensing cooperation with Gotion High-Tech. Affected by export control policies on China, their technological cooperation ended, but the company continues to procure cells, production equipment, and raw materials from China. The company also faces visa restrictions, hindering on-site debugging by Chinese technicians in India.

In terms of cooperation models, domestic automakers have abandoned direct complete vehicle manufacturing in favor of indirect approaches such as component supply, technology licensing, and supporting joint ventures.

Industry data shows that Suzuki has long held around 43% of India's passenger vehicle market share, with Japanese automakers relying on small fuel-efficient vehicles to dominate the local mainstream market without direct competition from Chinese brands.

Currently, domestic new energy supporting products continue to enter India's supply chain, disrupting the existing foreign supply system with lower costs and faster production timelines.

Industry statistics indicate that Japanese automakers have been slow in electrification capacity layout (deployment) in India, while local automakers rely on Chinese support to reduce electric vehicle production costs, continuously diverting end-user demand.

Industry insiders believe that if Indian electric vehicle support gaps are not filled by Chinese companies, other overseas manufacturers will quickly seize market share, leading to sustained pressure on the long-dominant Japanese automakers' market share.