Chinese auto giants set to return to India's motor show after 5-year hiatus

Auto expo 2025: China remains a key supplier of auto parts to India, accounting for approximately 30 per cent of India's component imports, valued at around $6 billion in FY24

Chinese automobile industry executives will participate in India’s largest motor show for the first time in nearly five years, signalling an easing of geopolitical tensions between New Delhi and Beijing.

 

The Ministry of External Affairs (MEA) has informed the Engineering Exports Promotion Council (EEPC), one of the event’s organisers, that it has no objections to the participation of Chinese nationals, according to a report by The Economic Times. The six-day event is scheduled to begin on January 17 in New Delhi.

 

The MEA’s letter to the EEPC, dated December 13, included a list of 42 countries approved for participation, with China among them. This decision comes after several years of restricted visas for Chinese citizens, which followed heightened bilateral tensions due to a deadly border clash in Galwan valley in 2020.

 

The restrictions have impacted Chinese automakers and auto parts manufacturers, including companies developing advanced components for electric vehicles, as well as representatives of automakers like JSW MG Motor India and BYD India. These stakeholders had been unable to attend the motor show since the tensions began.

 

The Economic Times report quoted a source saying that while the decision to permit Chinese participation is a positive step, it may have limited impact on this year’s Bharat Mobility Show as the clarification arrived only recently. However, the move is seen as a strategic necessity to strengthen India’s supply chain for advanced automotive and electronic components.

 

The source said that India needs to engage strategically with China to build supply chains for advanced parts, particularly in areas like electric vehicle technology, battery production, and raw materials for zero-emission vehicles. While Indian companies are working to localise production of advanced auto parts, it remains a long-term goal. The government, recognising industry challenges, is exploring some relaxations to support this transition.

 

This development aligns with a broader easing of tensions between India and China. For example, in the electronics sector, the government has resumed issuing visas to Chinese nationals working under its production-linked incentives (PLI) scheme.

 

China remains a key supplier of auto parts to India, accounting for approximately 30 per cent of India’s component imports, valued at around $6 billion in FY24. Notably, while China made the approved list of participating countries, nations like Iran and Bangladesh were excluded, the report said.

 

Following the 2020 border clashes, India imposed stringent measures against Chinese entities, including stricter visa regulations, investment restrictions, and bans on Chinese apps. The introduction of the Press Note 3 policy that same year required government approval for investments originating from countries sharing land borders with India, including China.