New EV Policy Raises Concerns Over Dependency On Chinese Manufacturers: GTRI

ENA Sectors 2024-03-26 13:06:27 New Delhi, Mar 26 (KNN) According to a report by the Global Trade Research Initiative (GTRI), the reduction in tariffs on EVs under the new Electric Vehicles (EV) policy is poised to significantly amplify supply chain dependence on China. GTRI's analysis underscores apprehensions about a potential surge in trade imbalances with China, particularly in the auto sector, where nearly a quarter of India's auto component imports already originate from Chinese sources. With Chinese firms involved in manufacturing cars within India, there are anticipations of a further influx of parts from China following the recent alterations in EV policy. The move to lower tariffs is seen as a boon for Chinese manufacturers, who have been grappling with anti-subsidy investigations in major markets such as the European Union and the United States. This policy shift is expected to directly or indirectly benefit Chinese companies, given their dominance in supplying EV batteries. GTRI warns that even with the entry of non-Chinese entities like Tesla and Vinfast into India, the reliance on China in the EV supply chain will intensify. The Indian automobile industry, which contributes 7.1 percent to the nation's GDP and over 50 per cent of its manufacturing GDP, faces potential disruptions from the large-scale entry and market dominance of Chinese automakers. GTRI's report underscores the need for strategic planning and policy interventions to safeguard India's interests in the rapidly evolving global EV landscape. (KNN Bureau) 37154 https://knnindia.co.in/news/newsdetails/sectors/new-ev-policy-raises-concerns-over-dependency-on-chinese-manufacturers-gtri 2024-03-26 13:06:27 knnindia.co.in New EV Policy Raises Concerns Over Dependency On Chinese Manufacturers: GTRI