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Chinese auto part imports set to rise with govt. EV push

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According to a media report, the government's push for electric cars is set to increase India's dependence on China. Imports of auto components for electric vehicles (EVs), especially from China, are set to rise as the domestic market for EVs grows.

As a result, India's trade deficit with China is also set to rise, since our imports are 10 times more than our exports. In FY2018, Chinese exports to India stood at US$ 4.3 billion - a growth of 27% compared to FY2013. 

While the government has set a clear roadmap for the adoption of EVs, the lack of a domestic manufacturing base is forcing OEMs and suppliers to import parts like transmissions, steering and electrical components, interior and other engine components from China. Also, despite import duties, importing components from China is reportedly less expensive than manufacturing the same in India.

With 60% of global volumes, China is a leader in electric cars and battery technology. 

Source: Economic Times

 
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