No sharing secrets with India: China's EV giants told to keep tech at home, claims report

China’s Ministry of Commerce reportedly held a meeting in July with more than a dozen automakers, instructing them not to make any auto-related investments in India. The move, according to a Bloomberg report, is part of Beijing’s efforts to safeguard the know-how of its electric vehicle (EV) industry and mitigate regulatory risks as Chinese automakers expand globally. 

The automakers were told to focus on protecting advanced EV technology by keeping key production within China, despite increasing overseas demand.

As reported, the meeting also encouraged Chinese companies to export knock-down kits—vehicle parts produced in China that are then assembled in foreign plants. This approach allows automakers to avoid tariffs on Chinese-made EVs while maintaining control over core production processes. 

Automakers such as BYD Co. and Chery Automobile Co. are pushing ahead with plans to build factories in countries like Spain, Thailand, and Hungary, but the focus remains on keeping critical technology within China.

The directive not only includes India but also extends to other countries, such as Turkey, where automakers have been advised to notify China’s Ministry of Industry and Information Technology before making investments. 

BT could not independently verify the claims made.

The guidelines come at a time when Chinese automakers are trying to globalize their operations to avoid tariffs while facing intense competition and slowing sales in their domestic market. 

However, keeping production within China could hinder their expansion efforts and pose challenges for countries like those in Europe, which are eager to attract Chinese investment for economic growth and job creation.

In Turkey, for example, BYD plans to build a factory with an annual capacity of 150,000 cars, while in Spain, Chery Automobile has partnered with a local firm to reopen a former Nissan plant. 

These projects are part of a larger trend of Chinese automakers seeking to establish a local presence in key international markets.