India may be closed to Chinese carmakers. But despite this, Chinese electric vehicle (EV) technology is starting to gain a foothold in the world's third-largest automotive market. New Delhi has largely blocked Chinese companies from entering its market since 2020.

On the other hand, Beijing is now also tightening its grip on exporting its technical know-how. Despite this, the relationship between the two countries' car manufacturing industries seems to be growing.

Tata Motors said in early June that it would use Chinese company Chery's car production platform to manufacture premium EVs in India.

The deal does not involve any equity stake. Given the political sensitivities, both companies have said that it is only a supply arrangement. They have stressed that no technical know-how will be transferred to Tata.

India has tightened its grip on Chinese businesses after soldiers from both sides were killed in a border clash in 2020. Despite efforts to improve relations between New Delhi and Beijing, some frictions remain.

Santosh Pai, a partner at Dentons Link Legal law firm, said, “If India wants to expand its manufacturing sector and become a bigger part of the global supply chain, then partnering with China is essential. If Chinese companies want to take global leadership, they cannot ignore India and its economic potential.”

Chery’s platform will be crucial for Tata to bring EVs to the market faster.

Tata plans to develop parts locally in the future instead of relying on imported kits from China. This has been viewed positively by Indian policymakers. Because it will promote Indian manufacturing.

The Tata-Chery deal shows that India, despite its best efforts, cannot completely outsource China's EV industry. The Chinese automakers understand that such deals can help them maintain their influence in India.

"If Chinese companies don't get involved, other countries will," Gao said. India is the world's third-largest EV market. That's why many countries are eyeing it.

Chinese participation is increasing in areas that were previously dominated by Japanese, Korean and European companies. Chinese technology is challenging other countries' technologies because it can be produced cheaply and quickly.

For example, Indian component maker Uno Minda has partnered with China's Innovance to build EV trains in India.

It wasn't all smooth sailing. In 2025, Beijing tightened restrictions on exports of some key materials and technologies in response to Trump's tariffs. Indian companies were also hit.

Indian battery maker Amara Raja relied on China's Ghosn for lithium-ion cell technology used in EV batteries. But the restrictions forced Amara Raja to end its licensing agreement with Ghosn.

"All technical collaboration has stopped," Amara Raja's executive director Vikramaditya Gaurineni told Reuters.

After the license expired, Amara Raja has been rapidly increasing investment in internal research and development and human resources, he said.

The company still buys equipment, battery cells and other materials from Chinese suppliers. But it still struggles to get visas for engineers coming from China to help with operations.

Chery is also collaborating with JSW Motors, not just Tata. As per an agreement reached between the two parties last year, JSW will use various Chery platforms to build EVs and hybrids.

JSW plans to sell 300,000 vehicles by 2030. Initially, Chery will provide kits to JSW. Gradually, JSW aims to build a supply chain in India and increase car production at its factories in western India.