Government’s Push For Electric Cars Set To Increase Import Of Chinese Auto Parts
The practically non-existent hardware manufacturing base in India is forcing OEMs and Tier-I suppliers to import more from China.
India, the world’s third-largest automobile market, will rely more on China for components as the government pushes for electric vehicles. In the financial year 2018 alone, Chinese exports to India touched $4.3 billion — up 27 per cent over FY13 — with the automobile industry executives saying that there’s no sign of slowing down in the future, reported Economic Times.
India imports 10 times more auto components from China than it exports. The ever growing import of auto components from China pose a threat to local auto components manufacturing ecosystem and will increase India’s already huge trade deficit with China in the coming years.
Chinese exports to India is driven mainly by the electronic components in vehicles, which will be used for the impending launch of a slew of new electric vehicles (EVs).
Also, the practically non-existent hardware manufacturing base in India is forcing OEMs and Tier-I suppliers to import more from China. Drive transmission, steering followed by electricals, interiors and engine components from China form a major chunk of the imports.