Chinese electric vehicle suppliers prefer technological collaborations and avoid ‘risky’ joint ventures

Chinese suppliers of electric vehicle (EV) companies in India, especially of lithium-ion battery cells that account for 35 to 40 percent of costs, find technology collaborations more attractive than a joint venture with a local player, due to stringent regulatory requirements. government. Foreign direct investment rules.

A senior executive of an EV company planning to set up a lithium cell battery factory said Chinese companies are ready “to give you technology for which they receive upfront technical fees, royalties, commissions and installations based on manpower and raw material costs’ .

β€œBut,” he added, β€œthey don’t want a JV model because of the potential

First print: April 22, 2024 | 11:20 PM IST