Chinese electric vehicle suppliers prefer tech tieups, shun 'risky' JVs

China is the largest cell and battery manufacturer in the world. Its companies have explored a possible entry to India but did not proceed due to stringent FDI norms for companies from China

Chinese suppliers for electric vehicle (EV) companies in India, especially  of lithium ion battery cells which account for 35-40 per cent of the cost, find technology tie-ups more attractive than a joint venture with a local player owing to the government’s stringent FDI rules.

A senior executive of an EV company which is planning to set up a lithium cell battery plant said Chinese companies are ready ‘to give you technology for which they receive technical fees paid upfront, royalty fees, commissions and installations by manpower and raw material cost’.

“But,” he added, “They don’t want a JV model because