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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Coretura, a 50:50 joint venture between Daimler Truck and Volvo Group, has entered into an engineering agreement with Accenture to accelerate the development of a software platform for commercial vehicles.

The company, headquartered in Gothenburg, Sweden, currently employs over 100 engineers. It continues to recruit specialists in system architecture, high-performance computing and cloud infrastructure to support its roadmap, which targets the delivery of its first commercialised products towards the end of the decade.

Coretura intends to create a single software platform, language and standard for trucks, buses and other heavy-duty transport vehicles. The platform is designed to support vehicle lifecycles of more than 15 years, moving the industry away from projects that require custom software development for each new vehicle.

As the engineering partner, Accenture will support development across several areas, including:

• Electrical and Electronic (E/E) architecture
• Software abstraction and hardware integration
• Embedded software, middleware, and cybersecurity
• Functional safety and cloud infrastructure

The platform aims to provide a reusable software stack to lower costs and standardise time-to-market for global manufacturers. For fleet operators, the system is designed to allow for continuous software updates and performance upgrades delivered over the air.

Johan Lunden, CEO, Coretura, said, “Our purpose is to advance mobility at the speed of ideas, and that takes depth. Building a full-stack SDV platform demands expertise across embedded software, middleware, cybersecurity, and functional safety, all designed for vehicles with lifecycles measured in decades. Accenture’s reinvention capabilities let us move faster without compromising the standards our customers depend on. This is acceleration, not course correction.”

Rainer Oder, SDV Embedded Software Lead, Accenture, added, “Helping the industry advance software-defined vehicles is a priority for Accenture. Our landmark collaboration with Coretura is designed to change embedded software engineering for automotive platforms. Together, we are looking to solve the challenges of a fully software-defined architecture – addressing critical areas such as hardware abstraction, API management and AI-based engineering optimisations.”

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The ePlane Company has announced the completion of its full-scale electric vertical takeoff and landing (eVTOL) aircraft, the e200X. Designated PT-01, the prototype has successfully integrated all core subsystems into a single structure, marking the transition from design and simulation to physical testing.

The e200X is designed as a single airframe versatile enough to serve three distinct markets – Passenger Air Taxi, Urban Cargo Carrier and Air Ambulance.

The company emphasises that the aircraft was designed to be compact, allowing it to integrate into existing urban infrastructure without requiring significant city redesigns.

Developed at the company's own facilities in Chennai, the e200X features in-house development of major components, including propellers, airframe structure, landing gear and battery pack.

This vertical integration provides the company with control over performance, manufacturing costs, and iteration speed, having reached this milestone on approximately USD 21 million in funding.

With assembly complete, the e200X will now undergo ground testing, flight testing and certification.

Prof. Satya Chakravarthy, Founder, The ePlane Company, said, "We set out to build an electric aircraft to a world-class benchmark, engineered and manufactured in depth in India for the World.  We deliberately designed the e200X to be compact, because an aircraft that asks a city to rebuild itself around it will not solve the problem it was built to solve. The same airframe can move people as an air taxi, carry goods as a cargo aircraft, and save lives as an air ambulance, and it can do all three using the infrastructure cities already have. That combination of real capability and capital efficiency is how we intend to compete, and win, in markets around the world.”

The company’s board includes prominent figures such as Vishesh Rajaram (Speciale Invest), Eash Sundaram (JetBlue) and Aditya Ghosh (Homage, Akasa Air). The venture, incubated at IIT Madras, has also received international recognition, including being showcased at Bharat Innovates 2026 and featured in Nvidia Founder Jensen Huang’s GTC keynote.

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Chinese technology company Xiaomi has marked a new milestone for its automotive product offering with its electric vehicle.

The company has announced a significant milestone in autonomous vehicle technology by completing the first official autonomous lap of the Nurburgring Nordschleife circuit in Germany with the Xiaomi YU7 GT, equipped with a Track Package, navigating the 20.8 km circuit without a human driver, recording a lap time of 10:29.483.

Following this performance, the Nurburgring has introduced a new official vehicle category: Autonomous Driving (under Electric Vehicles).

The Xiaomi YU7 GT autonomously navigated all 73 corners of the Nordschleife, managing 300 metres of elevation change and varying road surface conditions. The performance was driven by Xiaomi’s autonomous driving system, which integrates the Xiaomi XLA architecture and the MiMo-Embodied foundation model introduced in March 2026. The end-to-end architecture enabled the vehicle to coordinate steering, braking and power delivery in real-time, maintaining stability under high-speed and high-load conditions.

Xiaomi’s autonomous driving programme has evolved since the 2024 launch of Xiaomi HAD. The current system moves beyond simple behaviour imitation toward autonomous decision-making and deeper environmental interpretation. The company stated that the Nurburgring project serves as a critical testing ground to collect data for refining vehicle dynamics modelling, control strategy optimisation and safety redundancy mechanisms.

This achievement underscores Xiaomi’s commitment to advancing artificial intelligence in the automotive sector through rigorous real-world validation.

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QuantumScape Corporation has announced a multi-year joint research agreement with Honda R&D Co., a subsidiary of Honda Motor Co.

The collaboration focuses on advancing QuantumScape’s solid-state lithium-metal battery platform, including the development of associated manufacturing processes.

This agreement follows a successful technology evaluation period during which Honda conducted a technical study and competitive benchmarking of QuantumScape’s battery platform.

Atsushi Ogawa, Chief Operating Officer, Research Center of Excellence, Honda R&D Co, said, “QS technology demonstrated compelling and unique advantages during our evaluation. We see potential for QS technology to add value across a range of applications, including automotive, and we are excited to move forward into the next phase of our partnership.”

Dr. Siva Sivaram, CEO and President, QuantumScape, added, “Honda is a leading global automaker renowned for its engineering excellence and product quality across automotive and other applications worldwide, and its evaluation represents one of the most rigorous assessments of our technology to date. This agreement reflects the growing confidence in QS solid-state lithium-metal batteries to enable safer, higher-density energy storage.”

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