India's EV Industry Seeks Visa Relaxation to Bring in Chinese Talent
Electric vehicle (EV) manufacturers and battery producers are advocating for a change in India”s visa policies, aiming to enable the entry of Chinese professionals into the country. The industry asserts that Chinese experts possess valuable knowledge and technical expertise critical to advancing the development of electric vehicles. As demand for efficient and affordable electric two-wheelers and three-wheelers surges, the Indian market seeks to tap into China”s extensive experience and capabilities.
Sources within the industry reveal that a substantial number of Chinese engineers are needed in India to aid in the production of cost-effective and high-performance batteries. However, due to prevailing restrictions on granting visas to Chinese nationals, progress on projects has been impeded.
The Impact on Sight
Experts underline China”s dominant role in manufacturing the essential components for EV batteries. Impressively, China supplies 77% of cathodes, 92% of anodes, 74% of separators, and 83% of electrolytes used in EV batteries. Notably, a significant share of cathodes is produced using lithium iron phosphate (LFP). The impending consequence of the current situation could be a shortage of capacity to meet the burgeoning demand for electric vehicles. Some EV manufacturers find themselves on the brink of divesting their holdings or even closing due to ongoing governmental investigations tied to subsidies claimed under the “Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles” (FAME) scheme.
The Plea for Relaxed Regulations
Industry insiders reveal that a request has been forwarded to the government, seeking the relaxation of visa rules for Chinese professionals. This request stems from the belief that Chinese experts possess the specialised knowledge required for battery manufacturing and the production of critical components. Collaborative efforts between Chinese professionals and Indian industry players during the initial stages of development could significantly bolster the sector.
During a private meeting with the Ministry of Heavy Industries (MHI) and NITI Aayog, the EV industry also proposed the allowance of Chinese equipment into India for the manufacture of Advanced Carbon Composite (ACC) batteries. These Chinese components offer affordability advantages compared to their German or Korean counterparts.
A Vision of Collaboration and Growth
Industry analysts advocate for importing equipment and knowledge from China to aid in the expansion of India”s EV industry. They stress that the eventual products can be labelled as “Made in India” if the required equipment and training are made available. Like the automobile sector”s use of imported forging machinery and robotics, the components crucial for EV production can also be imported from China.
However, voices within the industry differ slightly. A Delhi-based EV manufacturer emphasises that the demand for visas for Chinese professionals is not as significant as the demand for essential equipment. While the push for Chinese expertise is strong, electronic manufacturing firms and potential beneficiaries of the auto Production-Linked Incentive (PLI) might be the major proponents of importing Chinese machinery.
In sum, the call for the relaxation of visa regulations highlights the industry”s eagerness to access Chinese expertise, potentially signalling a new era of collaboration and innovation in India”s electric vehicle sector.
