Chinese companies are quickly becoming strong competitors in the Indian EV market

China is quickly emerging as a strong competitor in India’s growing electric passenger car market, which is currently dominated by domestic companies Tata Motors and Mahindra & Mahindra.In less than two years, brands like BYD, of British origin but Chinese-owned MG, and Volvo, of Swedish origin and China, have overtaken South Korean and German rivals to claim almost a third of the Indian electric vehicle (EV) market. These brands have struck a chord with buyers looking for better technology, range and reliability.

More Chinese EV makers such as Xpeng, Great Wall and Haima are now exploring the neighborhood market. Their plans could get a boost, with the recent warming of ties between New Delhi and Beijing after about five years.

Experts say EV makers from the country have not only increased consumer choice but also helped accelerate India’s adoption of cutting-edge battery technology, premium features and faster product life cycles.

MG Motor was the first to gain a foothold. An early mover, it quickly became the biggest contributor among China-backed automakers, offering mass-market electric cars that were competitively packed with features. “Our growth momentum in India is driven by exceptional customer-centric innovations and a deep understanding of local market needs,” said Vinay Raina, Chief Commercial Officer at JSW MG Motor India, a joint venture between India’s JSW Group and China’s SAIC Motor.

Localization, Raina points out, plays a crucial role in staying competitive.

Local-global gains

By combining global expertise with local adaptations, these companies have been able to bring new models to India faster than many domestic models. BYD, one of the world’s largest EV manufacturers, soon followed suit, steadily expanding amid strong commercial and fleet demand. Meanwhile, Volvo Cars, Swedish by heritage but owned by China’s Geely, has built a steady presence in the premium segment. Volvo’s volumes remain relatively smaller, but reflect a growing luxury EV segment. “Our growth in India is driven by a strong and loyal customer base and our accelerated focus on electrification,” said Jyoti Malhotra, MD of Volvo Car India. The company, a pioneer in luxury electric mobility, has committed to launching one new electric car every year.

The coexistence of strong domestic and global brands has transformed India into a highly developed EV market, especially in the premium segment.

Volvo, for example, regularly holds customer clinics to align features, prices and expectations. “All the models we sell in India are now assembled locally,” says Malhotra.

Still leading

In 2019, Chinese brands were not responsible for sales of a single battery electric vehicle (BEV) in India. By October this year, they had contributed 57,260 vehicles, claiming 33% of the market by volume, according to Jato Dynamics.

But despite this surge, Indian companies remain the backbone of the country’s EV growth. Their BEV sales have increased to 101,724 units this calendar year through October from 74,442 units in 2024. “Localization, affordability, greater geographical reach and strong alignment with policies like FAME-II and PLI have worked,” said Ravi Bhatia, president of Jato Dynamics.