Now Reading: Chinese carmakers’ global push opens door for Indian auto part makers
-
01
Chinese carmakers’ global push opens door for Indian auto part makers
Chinese carmakers’ global push opens door for Indian auto part makers
Samvardhana Motherson International Ltd, India's largest auto parts maker, sees fresh business in Chinese carmakers expanding outside China. Companies like BYD, SAIC and Chery are setting up factories in Europe, Latin America…
The Story in Brief
Samvardhana Motherson International Ltd, India's largest auto parts maker, sees fresh business in Chinese carmakers expanding outside China. Companies like BYD, SAIC and Chery are setting up factories in Europe, Latin America and Southeast Asia. Motherson's management said it can support these firms as they localise production, particularly in regions where the supplier already has a footprint. Sona Comstar has also identified the trend as a key opportunity.
Analysts at Nomura Consulting caution that only Indian component makers with established international manufacturing will benefit. Tenneco Clean Air India said its European sister firm's increased engagement with Chinese players could open work for the Indian unit. The opportunity arises as Chinese EV sales rose 20% in 2025 to 12.9 million units, while Western carmakers scale back electric-vehicle plans.
The Indian Opinion
The narrative that Indian auto parts makers will automatically gain from Chinese carmakers' global march is exaggerated. The opportunity is real but narrow: only suppliers with existing factories outside India can tap it. Exporting from India remains unviable due to duties and geopolitics. The real test will be how many new plants Chinese firms actually open and whether Indian suppliers can win contracts in Europe or Latin America against local rivals. Watch the number of multi-country supply agreements signed this year.
Source: livemint.com
This story was synthesised by AI from the source linked above.
