The Road Ahead For Chinese Automakers In India?

The Road Ahead For Chinese Automakers In India?

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.    

Wayve, NVIDIA, And Stellantis Collaborate To Develop Autonomous Vehicle Ecosystem In France

Stellantis - Wavye - NVIDIA

Wayve, NVIDIA and Stellantis have announced a joint collaboration alongside the French government at the Assises du Véhicule Autonome to support the deployment of autonomous vehicles in France and across the European Union.

The initiative combines Stellantis’ L4-Ready Platforms with the Wayve AI Driver system, integrating NVIDIA Halos OS on the NVIDIA Hyperion compute and sensor architecture. The collaboration aims to establish an autonomous vehicle value chain in France, spanning silicon development, software integration and vehicle manufacturing.

Local transport partners will engage with trade unions, municipal authorities, and mobility stakeholders to address regulatory alignment, safety requirements, and operational deployment.

Philippe Tabarot, French Minister of Transports, said, "I am pleased to see this collaboration between Wayve, NVIDIA and Stellantis launched at the Autonomous Vehicle Forum in France. France is committed to adapting its regulatory framework to accelerate the development of autonomous vehicles while maintaining strict safety and data sovereignty requirements. By bringing together trade unions, city authorities, and mobility stakeholders, this collaboration embodies the collaborative spirit of the Assises du Véhicule Autonome, as well as the approach required to transition from trials to real-world deployment."

Kaity Fischer, VP Autonomous Mobility & Operations, Wayve, said, "France is leading the way in preparing for autonomous vehicles, and we’re proud to enter this collaboration at such an important moment. By working directly with the French Government and our partners, we can help shape how this technology is deployed safely and responsibly and accelerate its development across the country and entire EU."

Anne Laliron, SVP of Technology Research, Stellantis, said, "This collaboration will help accelerate the delivery of autonomous driving technologies that make mobility safer and more convenient for customers. While its impact is global, France is one of Stellantis’ key centres for engineering and technology development, making it a natural home for advancing the future of AI-powered mobility."

Ali Kani, VP of Automotive, NVIDIA, said, "Bringing safe autonomous mobility to Europe requires deep collaboration across AI, computing and vehicle engineering. NVIDIA Hyperion platform, combined with Wayve’s embodied AI and Stellantis’ automotive expertise, provides a foundation for that ambition. Together with the French Government and local partners, we can help build an ecosystem that brings the benefits of autonomous driving to communities across France and Europe."

Audi Debuts Curved Digital OLED Lighting Technology On New Q91

Audi Q91

German luxury carmaker Audi has introduced third-generation digital OLED rear lighting technology on the Q91, marking the production debut of three-dimensionally curved digital OLED panels in the automotive industry.

The lighting system incorporates carrier glass measuring 0.1 millimetres in thickness, allowing a bend radius of up to 200 millimetres to match the vehicle's body contours. The Q91 uses six digital OLED panels housing 512 individual segments, including an outer curved panel with 99 segments.

The curved positioning extends light visibility to wider lateral angles and incorporates warning symbols within the communication light system to alert surrounding traffic to breakdowns, emergency braking or accidents. Up to eight digital light signatures are available across static, active and semi-active display settings.

The vehicle also features digital Matrix LED headlights utilising a 13-millimetre micro-LED module containing 25,600 individual micro-LEDs. The headlight system projects high-resolution lane lighting, orientation paths and dynamic turn signal graphics directly onto the road surface to assist lane centring and indicate directional changes to pedestrians and other vehicles.

Audi first introduced OLED technology on the TT RS in 2016, followed by segmented digital OLEDs on the Q5 in 2020 and second-generation panels on the Q6 e-tron in 2024.

Stefan Berlitz, Head of Lighting Development at AUDI AG, said, "At Audi, light means safety first and foremost – seeing and being seen. Digitalisation opens up entirely new possibilities for further enhancing road safety. The curved digital OLED technology in the Audi Q91 impressively demonstrates this technology’s potential. It combines design freedom, personalization, and communication with the vehicle’s surroundings at a new level. Our vision is to gradually transform light into an intelligent means of communication that makes interaction between the vehicle and its surroundings even safer and more intuitive."

Bolt Selects NVIDIA To Power European Autonomous Ride-Hailing Fleet

Bolt - NVIDIA - Lucid

European ride-hailing platform Bolt has selected the NVIDIA Alpamayo Stack autonomous driving software to operate its vehicle fleet in Europe, starting with Lucid automobiles.

The deployment commences in Madrid in 2027, with subsequent deployment planned in Germany and France. The initiative supports the integration of at least 25,000 Level 4-ready Lucid vehicles equipped with NVIDIA Hyperion compute and sensor architecture. The program contributes to Bolt's objective of deploying 100,000 autonomous vehicles across Europe and the UNECE region by 2035. The system integrates reasoning artificial intelligence with perception and planning modules alongside NVIDIA Halos safety controls.

Jevgeni Kabanov, President and Head of Autonomous Driving, Bolt, said, “Autonomous driving will change how people move around cities, and Europe should play a major role in how that future is built. Our ambition isn't to bring autonomous driving to just a handful of cities. We want to make autonomous ride-hailing available at scale across Europe, with 100,000 vehicles on our platform by 2035. We're bringing together some of the best technologies in the world to make that possible. Following our first autonomous mobility launch in Luxembourg, our next step with NVIDIA and Lucid is to begin a programme in Madrid in 2027. The Region of Madrid is pioneering a structured framework for commercial autonomous mobility in coordination with national authorities. Germany will also be a priority for what comes next, with cities already setting out clear ambitions for autonomous mobility.”

Rishi Dhall, Vice-President of Automotive, NVIDIA, said, “Robotaxis will scale when every vehicle is built on a common, safety-engineered foundation. NVIDIA Hyperion standardises the compute and sensor architecture across vehicle platforms, while NVIDIA Alpamayo Stack and Halos provide the driving intelligence and safety foundation. Bolt’s European platform, operational experience and work with cities and regulators make it a strong partner to bring autonomous ride-hailing to market at scale in Europe.”

Valeo Collaborates With NVIDIA To Develop Autonomous Driving Compute Platforms

Valeo - NVIDIA

French tier 1 supplier Valeo has announced plans to develop and industrialise high-performance compute platforms utilising the NVIDIA Hyperion reference architecture and NVIDIA Halos safety system.

The initiative combines Valeo's vehicle integration capabilities with centralised computing architectures to support software-defined mobility systems. The platform utilises the NVIDIA DRIVE AGX Thor architecture to deliver processing performance and redundancy for Level 4 autonomous driving, commercial trucking and robotaxi applications. The development framework enables automakers to integrate features and deploy autonomous technologies across vehicle models.

Marc Vrecko, Chief Executive Officer, Valeo Brain Division, said, "Our work with NVIDIA marks a significant milestone in our mission to make autonomous driving a safe, scalable reality. By seamlessly integrating NVIDIA’s advanced compute power into our next-generation platforms, we are delivering the flexible, centralised intelligence vehicle manufacturers require to redefine the driving experience and meet the evolving demands of tomorrow’s intelligent vehicles."

Rishi Dhall, Vice-President of Automotive, NVIDIA, said, "Valeo’s expertise in high-performance computing, vehicle integration and automotive-scale industrialisation will help automakers adopt NVIDIA Hyperion and NVIDIA Halos at production scale. Together, NVIDIA and Valeo are providing the AI performance, functional safety and scalability needed to accelerate the development of Level 4 autonomous vehicles and robotaxis."