The road for Indian EVs passes through Beijing. What if China sets up a barricade?

India's electric-vehicle (EV) sector has been experiencing rapid growth, with electric three-wheelers making up over 65% of sales and electric passenger vehicles increasing from 5% to 8% of the total in recent months. However, the success of India's EV revolution largely depends on China. Around 80% of the heavy-duty battery-management systems (BMS) in the country, the essential "brain" of EVs, are imported from China.

Cybersecurity concerns have arisen as Chinese BMS apps, such as Bat BMS and Epoch, have been used by hackers to remotely disable e-rickshaws' batteries via Bluetooth. In response, the Indian government has banned these apps and is considering new rules to enhance cybersecurity management during software updates. British defense firms have also warned about the vulnerability of EVs, which are equipped with cameras, microphones, and cloud links, likening them to spyware.

China's significant influence in the global automotive market is another cause for concern. Many well-known automakers, including Aston Martin, Benelli, MG Motor, Volvo, and Mercedes Benz, have Chinese ownership or significant stakes. This gives China a strategic advantage in the automotive sector. India now faces a dilemma: should it adopt the US' blanket ban on Chinese-backed firms, follow Japan's path towards hybrids, or find a middle ground through collaboration with China, much like Europe has done? The alternative may be to build a separate EV market, despite the dominance of the "Chinese way."