The reasons may be entirely political or geopolitical in nature, the road ahead for Chinese automakers in India looks difficult. 

Chinese automaker BYD and its Indian partner Olectra Greentech (formerly known as Goldstone Infratech) is in news for its proposal to set up a manufacturing plant for electric cars in India. Certain ministry officials involved in vetting the proposal have raised security concerns, claimed an industry source.  

The truth is hard to ascertain. It is also tough to ascertain the news in various media platforms regarding BYD conveying to Olectra that it would like to drop the proposal to invest in India. The proposal to invest is claimed to be worth USD 1 billion. 

Since the clash between the Indian armed forces and Chinese armed forces at Galwan valley in 2020, the Indian Government has tightened scrutiny of Chinese investments in the country.  The ones to get affected by this move have not just been the Chinese automakers but also producers of cell phones and other goods. 

Key players in the Chinese EV market (also the world’s largest) such as BYD, SAIC and Geely have exerted their interest in exploring the Indian automobile market. While MG Motor India is a wholly-owned subsidiary of SAIC Motor, the Indian partners of BYD and Geely – Olectra Greentech and Adishwar Auto Ride respectively – are not legacy automotive players to be precise. 

Against the emerging thought process that India produces among the world’s best automobiles, such joint ventures arrangements are likely to be met with greater scrutiny, the China sentiment included. With much work going on in India on the alternative fuel technologies front, including electric, it is clear that any foreign technology or effort will only be accepted after being truly ‘Indian-ised’ or localised.   

The low entry barrier supporting the entry of start ups such as Ather Energy and Ola Electric in the EV space in India, legacy players such as Mahindra & Mahindra and Tata Motors have not stayed behind in their efforts to make exciting EVs that can address the real-time needs of Indian buyers as well as those in other markets.   

What needs careful consideration is that they are competing with global players such as Honda and Toyota, which makes the Indian automotive market a tough place to be in.   

While players like MG have an Indian management even though it is a wholly owned subsidiary of SAIC Motor (China), the fact is, the going has gotten tough for it too. The situation as a whole for Chinese companies or those that have Chinese partners seems to have turned difficult.  

At one end there's rising competition coupled with China sentiment and at the other, there's the need to invest and grow. 

With India said to be on the path to become the world’s biggest micro electromobility market, a significant shift at various levels is apparent.   

As the biggest employer in the country and the biggest tax player too, the Indian auto sector, the government is keen, turns into a leading manufacturing hub of the world. 

Courting EV players such as Tesla, the government seems clear about how it wants the foreign companies to behave when they come to do business in India. It has made itself clear that it is okay with Chinese players coming to India but they should conduct their operations lawfully and in compliance with laws of the country, mention sources. This points at the government being keen on Indian partners having a larger control of the joint venture, they add. 

The answer to this thinking may be found in how China treats foreign players organisations wanting to do business there. It makes it necessary for the organisations to have a Chinese partner. Besides that, the foreign organisations are known to face face a number of regulatory and cultural challenges. 

The authorities in China are said to favour its own over foreign players. This is despite the commitment by them to invest huge sums and ensure complete transparency in their dealings.   

India as a democratic country has its own regulatory and cultural challenges. As the world’s largest two-wheeler market, fourth largest light vehicle market and fifth largest commercial vehicle market, India is likely to come across as a more balanced market with the participation of leading American, European and Japanese brands. 

Some may have left because of reasons that are complex and also because of a marketplace that is tough to understand as well as crack. The homegrown automakers such as Mahindra & Mahindra, Ashok Leyland and Tata Motors have been giving tough condition to the foreign players in India by smartly moving up the ladder. They are also expanding their reach to some of the most competitive markets across the globe. 

They have been acquiring companies but aren't exactly acquisition hungry. It is not by fluke that Tata Motors, which owns Jaguar Land Rover and the Korean Daewoo commercial vehicle business, has come to command 86 percent of the EV market in India. The automaker has been investing in technology and transparently engaging with its suppliers and other stakeholders to build a market reach.   

Mahindra & Mahindra has been making big investments in setting up as well as upgrading its R&D facilities in India. It is making big investments in upgrading its design and development facilities in the country; in testing and validation facilities as well. A sneak peek in the MRV will reveal the extend of efforts being taken. 

Underling the Indian Government’s seriousness to turn the Indian auto industry into a leading global manufacturing hub is the stress on local technology development, local content and local manufacture. The efforts to make chips is indicative of the same.  

While the BYD, Olectra or BYD-Olectra badged electric buses operated by city and state transport undertakings (state government organisations largely) may be a common sight on Indian roads, it is also evident that the foot print of electric buses made by homegrown manufacturers such as Ashok Leyland and Tata Motors is also fast expanding.  

It was roughly two years ago that BYD announced its plans to enter the Indian electric car market, albeit at the premium end with the e6 MPV and latter with the stylish Atto 3 SUV. The company, claim sources, has already invested over USD 200 million in India. Busy expanding its dealership network across the country, it has sold over 2,000 e-cars in India in the last one and a half years, they add. 

But then, BYD is not the first Chinese auto maker whose proposal to invest in India seems to have run into rough weather. A few months back, MG Motor India was into news regarding it’s parent company wanting to dilute its stake in it. The reason being given for this, was the delay in the clearing the proposal to hike investment in Indian by its parent – SAIC Motor.   

Even though it may appear as an iconic British brand or be projected as one, MG or Morris Garages is owned by a Chinese organisation. The products it offers in India are said to be of Chinese origin even though they are assembled at a factory in Halol, Gujarat. 

With the proposal to invest by SAIC Motors being subjected to greater scrutiny, it is not surprising that MG Motor India is said to scout for a strategic investor to raise funds and fuel growth. Facing raid from the tax authority in November 2022, the company has been making efforts to cultivate a strong local supply chain for its products. It is also supporting the start up culture in India by showing interest for cooperation. 

Despite the strong China sentiment, it cannot be refuted that businesses in India continue to source from there. A large amount of raw materials for the pharma industry are said to be sourced from there by the Indian pharma companies. Likewise, Indian auto companies are also known to source a good deal of parts – including batteries and electronic parts/modules – from China. 

It is necessary that the government and people of India demand that whoever would like to business here should thoroughly engage with the local necessities, regulations and culture in spirit and on paper.    

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Beijing-based electric technology company U Power focussing on battery-swapping solutions, has signed a Memorandum of Understanding with Beijing Foton International Trade (Beijing Foton), a wholly-owned subsidiary of Beijing Foton Motor Co (Foton Motor), a leading commercial vehicle manufacturer in China.

The partners will come together to jointly promote battery-swapping compatible electric heavy trucks, buses and vans in Southeast Asia, South America, Hong Kong SAR and Macau SAR markets.

As per the understanding, U Power will provide technological support to enable the incorporation of battery-swapping capabilities on Beijing Foton vehicles, development and testing of battery-swapping stations to serve electric vehicle models, as well as connection of vehicles with its battery-bank ecosystem.

On the other hand, Beijing Foton will gather and share performance data on battery charging, health and capacity records.

The partners have also agreed to explore expanding the cooperation in the future.

Johnny Lee, CEO and Chairman, U Power, said, "This partnership marks another significant step forward in our strategy of expanding OEM partner base. Through joint promotional and sales efforts, U Power expects to accelerate the establishment of a comprehensive battery-swapping and battery-bank ecosystem in several of its existing key markets. We look forward to a strong collaboration with Beijing Foton to strategically expand our global footprint and increase our market share."

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Delhi-NCR-based smart parking and mobility solutions provider ParkMate has rebranded itself as Blyp, which it stated is part of its vision to become a tech-driven urban mobility ecosystem that goes far beyond parking.

Dhananjaya Bharadwaj, Co-Founder & CEO, Blyp, said, “The name Blyp represents speed, precision and simplicity – exactly what we want to deliver to every urban commuter. This rebrand is more than just a new look. It’s a reflection of our expanded mission – to reimagine urban movement through data, design and deep tech. We’re excited to introduce Blyp as the mobility companion of tomorrow’s India.”

With a new identity, Blyp aims to become an enabler of intelligent urban navigation, offering users real-time parking discovery, smart routing, EV compatibility and partner integration across both public and private sectors.

Abhimanyu Singh, Co-Founder & COO, Blyp, said, “ParkMate was our beginning – a product born out of a real problem. Blyp is our evolution. Over the years, we’ve grown from a parking solution into a full-fledged mobility tech platform. This rebrand allows us to think bigger, move faster and build deeper value for individuals, businesses and governments alike.”

Going forward, the company will roll out new features, expand into new cities and aims to build new infrastructure collaborations.

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Dover India, part of USD 7 billion Dover Corporation, has joined with RV College of Engineering (RVCE), Bengaluru, to set up a laboratory in Materials and Component Reliability Testing under the Centre for Hydrogen and Green Technology, a Centre of Excellence at RVCE.

The facility will focus on research in the area of hydrogen technologies and advanced material reliability under extreme environments. The idea is to explore emerging areas in hydrogen technology such as sustainable materials, Internet of Things (IoT) and Industry 4.0 solutions. The lab will be housed within the RVCE campus.

The partners state such facilities, designed according to global standards, are first-of-their-kind in India and are available only in a handful of countries globally. It will bring over 20 technologists from Dover and RVCE to work on next-generation research focusing on generation, storage, transportation, handling, safety and end-applications for hydrogen.

Established in 2021, Dover India’s R&D arm in Bengaluru, is claimed to have emerged as a leading Innovation Centre focusing on prognostics, tribology, corrosion and coatings, polymer synthesis and material characterisation.

Vivek Srivastava, R&D Head, Dover India, said, “Collaborating with RVCE enables us to foster a strong academia-industry partnership that will fuel the next wave of clean energy innovation and cover the entire spectrum of basic and applied research in this area.”

The Memorandum of Understanding (MoU) formally signed between the two organisations saw participation from Dover India’s Tushar Banerjee, Vice President & Managing Director and Prashanth Santhanam, Senior Director – Finance. Dr M P Shyam, President – Rashtreeya Sikshana Samithi Trust (RSST), Dr K N Subramanya, Principal – RV College of Engineering and Dr Geetha K S, Vice Principal – Strategic Higher Education Leader, Expert in STEM Curriculum Development, Research & Innovation and Dr Ujwal Shreenag Meda, Coordinator, Centre for Hydrogen and Green Technology represented RVCE. 

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The Ministry of Road Transport & Highways (MoRTH) has introduced the Motor Vehicles Aggregator Guidelines, 2025, a revamped policy aimed at modernising the ride-hailing sector with a focus on safety, driver welfare and transparent operations. Under the new guidelines, a structured fare system and clear cancellation penalties are now in place.

The policy states that the State Government's notified fare will serve as the base fare, wherein aggregators can charge a minimum of 50 percent below during non-peak hours and a maximum of two times the base fare during peak demand (as compared to 1.5x). A base fare for a minimum of 3km is chargeable to compensate for dead mileage.

Drivers are guaranteed at least 80 percent of the fare, with daily, weekly or fortnightly settlements. For aggregator-owned vehicles, drivers receive at least 60 percent of the fare.

A penalty of 10 percent of the fare (up to INR 100) may be imposed for unvalidated cancellations by either the driver or the passenger. No charge for dead mileage will apply unless the ride distance is less than 3km, the fare will only be charged from origin to destination.

The new policy introduces important provisions for aggregators:

Passenger Insurance: A minimum insurance cover of INR 500,000 for passengers is now mandatory.

Aggregators cannot prevent drivers from working with multiple platforms. A mandatory in-app rating system for both drivers and passengers is required to ensure quality service.

Furthermore, a comprehensive mandatory 40-hour Induction Training Programme is now compulsory for drivers, covering app usage, legal provisions, first responder training, safe driving and sensitivity towards gender and Divyangjans.

Drivers must undergo mandatory medical examinations, psychological analyses and police verification. Aggregators will also need to provide a Health insurance (minimum INR 500,000) and term insurance (minimum INR 1 million) for each driver, with annual increases.

Annual refresher training is now mandated, with quarterly training for drivers with low ratings. Aggregators are not allowed to onboard vehicles older than 8 years from their initial registration. The app and website (aggregator) must disclose the proportion of fare and incentives provided to drivers.

To ensure accessibility, the aggregator apps must now include special features for Divyangjans, which also provides for divyangjan-friendly vehicles mandated by State governments.

Aggregators must maintain a 24x7 control room and call centre with the vehicles requiring functional tracking devices linked to government control centres, with in-app mechanisms to detect route deviations and alert authorities.

The aggregators are responsible for the safety of all passengers, particularly children, women and Divyangjans.

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