Tata, JSW plan $1b India EV push to cut China reliance

Indian conglomerates Tata Group and JSW Group plan to spend nearly US$1 billion on EV and battery research in India to reduce reliance on Chinese technology.

Tata’s battery unit Agratas is spending more than US$400 million on a Bengaluru R&D site for lithium iron phosphate and lithium manganese iron phosphate cells now sourced from China.

JSW Motors plans to invest at least US$500 million over five to six years in a Maharashtra research hub for vehicle localization, software, and connected vehicles, said Ranjan Nayak, chief executive of the company.

The moves come as Beijing tightens access to advanced battery and EV technology and Indian companies face more scrutiny and delays in cross-border partnerships.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

India’s EV policy is steering these R&D bets

Tata and JSW are positioning these R&D plans around India’s wider push to build EV and battery manufacturing at home, including tariff changes 1.
India offers financial incentives, including a US$2.1 billion scheme for advanced chemistry cell (ACC) battery storage plus a US$3.1 billion scheme for the automotive sector 2.
The government raised customs duty on imported lithium-ion batteries from 10% to 20% 1.
It also proposed removing customs duty on 35 items used in EV battery manufacturing to support local production 3.

Tariffs and local-content rules are speeding up the timeline

India wants less reliance on Chinese technology. Under a new policy, eligible foreign EV makers can import certain EVs at a 15% basic customs duty if they invest US$500 million and meet domestic value addition targets, including 25% within three years 2.
That approach could slow the aim of making 30% of new vehicle sales electric by 2030, since costlier battery imports may raise vehicle prices. Electric cars accounted for 1.3% of total car sales in 2022 2.
The shift away from China remains complicated. JSW Group and other investors plan to invest 50 billion rupees (US$600 million) for a 51% stake in JSW MG Motor India, while China’s state-owned SAIC Motor, one of China’s biggest carmakers, will hold the remaining 49% 2.