Cut on Tariff for electric vehicles could head to import surge from China: GTRI

According to a research released on Sunday by the think tank GTRI, the Indian government's efforts to encourage domestic production of electric vehicles (EVs) could result in a significant entry of Chinese automakers into the Indian market. 

Thanks to the quick advancement of electric vehicle technology in China's automotive sector, the Global Trade Research Initiative (GTRI) says that China now exports more electric vehicles and related components than any other nation. The state's substantial backing has made this growth possible.

In 2022–2023, India imported automobile parts worth USD 20.3 billion, with 30% of those parts originating from China.

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China's growing prominence in the global supply chain for electric vehicles (EVs) means that imports of auto components are expected to rise as long as the government maintains its EV priority.

Estimates indicate that China possesses 75% of the global battery production capability, with electric car batteries making up 40% of the entire cost. Furthermore, it represents roughly half of the world market for electric car exports and production.

Chinese businesses are relieved to be entering the Indian market, according to GTRI founder Ajay Srivastava. He stated the press that EV exports of China to the European Union and the United States happen to be declining because ofthe anti-subsidy enquiries and enhanced trade boundaries over the export of subsidised cars/EV batteries.