Chinese Carmakers Secure a One-Third Share of India’s Electric Vehicle Market

Chinese Brands Grab One-Third of India’s Electric Car Market as EV Battle Heats Up

India’s electric mobility landscape is undergoing a dramatic shift, and at the centre of this transformation is the rapidly growing influence of Chinese brands in India’s electric car market. New data from the Federation of Automobile Dealers Association (FADA) reveals a striking trend: one in every three electric cars sold in India now comes from a company with Chinese ownership or a Chinese strategic connection.

This surge marks a clear challenge to the dominance of Tata Motors, which once held an overwhelming 85% share of the electric passenger vehicle (PV) segment. The entry and expansion of Chinese-linked brands such as JSW MG Motor, BYD and Volvo have altered market dynamics, setting the stage for intense competition.

A Narrative Shift in India’s EV Landscape

Over the past 12–18 months, Chinese EV brands in India have strengthened their presence through aggressive model introductions and expanded dealership networks. Consumers are encountering more premium and mid-range electric models, reflecting the growing ambition of these companies to capture the demand for modern, tech-driven mobility.

According to FADA’s registration-based retail sales data, Chinese brands in India’s electric car market collectively command 33.3% share, signalling a structural evolution of the EV segment. This level of penetration was unimaginable a few years ago when Tata Motors practically monopolised the category.

Between January and October, sales of Chinese-connected brands more than doubled, registering a stunning 165% volume growth year-on-year. Their performance significantly boosted the overall EV segment, which grew 87% during the same period to reach 136,610 units.

However, without the contribution of these Chinese players, industry growth would have dropped sharply to 63%, highlighting the essential role they now play in accelerating EV adoption in India.

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EV Boom Outpaces Conventional Cars

The momentum of the EV category contrasts sharply with the internal combustion engine (ICE) market. According to the Society of Indian Automobile Manufacturers (SIAM), ICE passenger vehicle volumes saw a 1.4% decline in the six months ending September. The data points to a clear consumer shift toward electrified mobility solutions.

The dominance of Chinese brands in India’s electric car market is part of a global pattern, with Chinese automakers investing aggressively in new technologies, battery innovation and cost-efficient production — advantages that are now being leveraged in India.

Foreign and Domestic Players Prepare for Continued Competition

The growing success of Chinese-affiliated brands has prompted other global automakers to rethink their India EV strategy. Netherlands-headquartered Stellantis — the parent of Jeep, Citroën, Peugeot and other heritage brands — is preparing to bring a Chinese EV brand to India.

The company has already chosen Leapmotor, a Hangzhou-based electric vehicle manufacturer partly owned by Stellantis. Executives are currently finalising India-specific product selections, powertrains and launch timelines.

Domestically, the JSW Group is deepening its ties with China’s third-largest automaker, Chery. Through this partnership, JSW will receive technology, platforms and components to develop future passenger vehicles. The first models under this collaboration are expected to launch by 2027.

JSW’s existing joint venture with China-based SAIC to operate MG Motor India continues to be a major pillar of its EV ambitions. Several new launches are planned to help the brand retain its position as India’s second-largest electric carmaker.

Overall, JSW intends to invest ₹26,000 crore and introduce up to 25 new models—a mix of EVs, hybrids and range-extender vehicles—between 2025 and 2030, catering to price points beginning at ₹8 lakh.

BYD Pushes for Local Manufacturing as Demand Grows

BYD, China’s largest electric vehicle manufacturer and the world’s top EV seller, is seeking approval to expand operations in India. While the company currently relies on imports, it hopes to set up a domestic manufacturing plant. Local operations would not only allow BYD to competitively price its models but also expand its product portfolio.

BYD is now India’s fifth-largest electric carmaker, with monthly sales of 500–550 units. Its models sit at a premium price bracket — starting at ₹25 lakh and going up to ₹53 lakh — targeting affluent EV buyers. The company has rapidly expanded to 47 showrooms across 40 cities, signalling long-term commitment.

Tesla’s Quiet Entry into a Crowded Market

After its headline-making India entry in July, Tesla has had a subdued beginning. With just a single model, the Model Y, the US electric vehicle giant sold 104 units across August and September. Tesla recently opened a dedicated ‘Tesla Centre’ in Gurugram, furthering its retail expansion strategy.

Priced at ₹60 lakh, the Model Y competes with luxury EV offerings from BMW, Mercedes-Benz and Volvo. While Tesla’s arrival adds prestige to India’s EV market, its current pricing and limited portfolio keep it from competing directly against mass-market players — especially the fast-growing Chinese brands in India’s electric car market.

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