‘The Thaw is Real’: India Turns to China for EV and Renewable Energy Partnerships
As the Iran war drives energy price volatility, Indian businesses are seeking technology and partnerships in China to bolster the country’s electric vehicle (EV) and renewable energy sectors.
A delegation of eight Indian companies visited Shanghai, Zhejiang, and Wuxi between March 29 and April 4, marking the first such visit in over five years, according to Ranjeet Mehta, secretary general and CEO of the PHD Chamber of Commerce & Industry.
“Energy security is extremely critical for our country,” Mehta said, noting the impact of Middle East disruptions on India’s fossil fuel imports, including oil and liquefied petroleum gas, much of which transits the Strait of Hormuz.
Six of the visiting companies are startups in EV charging, battery storage, electric trucks, and energy trading. Mehta emphasized India’s need for Chinese technology to meet its target of EVs accounting for 30% of sales by 2030, though adoption remains constrained by limited charging infrastructure and range anxiety.
The delegation plans a larger follow-up visit later this year for the Canton Autumn Fair in Guangzhou.
The visit comes amid a cautious warming of India-China relations. Earlier this year, India eased rules allowing Chinese investment, a shift from restrictions imposed after the 2020 Galwan Valley border clash. Yu Jing, spokesperson for the Chinese Embassy in India, tweeted that “the thaw is real.”
Analysts note that Indian firms prefer joint ventures or technology-transfer partnerships rather than major investments in China. The two nations have gradually normalized ties since Prime Minister Narendra Modi attended the Shanghai Cooperation Organization summit last year, resumed flights, and disengaged troops along the border.
“India cannot be competitive in emerging technology sectors without some level of commercial engagement with China,” said Richard Rossow, senior adviser at Center for Strategic and International Studies (CSIS). He added that China, reliant on export-led manufacturing, is likely to match India’s enthusiasm in repairing ties.
