India and China Explore E-Mobility Collaboration Amid Rising Fuel Prices
Rising fuel costs and demand for electric vehicles present India with an opportunity for collaboration with China in e-mobility. India is facing challenges in adopting electric vehicles, with sales only reaching 2.08 million in 2024, while dependencies on battery imports continue to affect its market potential.
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As of March 2026, India has seen rising fuel prices due to global tensions, prompting the government to encourage public transport and austerity measures. The transition to electric vehicles (EVs) could reduce crude oil imports by over 90% by 2047, potentially saving USD 240 billion annually.
However, EV sales remain low, with only 2.08 million units sold in 2024. India has achieved just 2.8% of its battery manufacturing targets and imported USD 1.8 billion in lithium-ion batteries in 2022.
Recent relaxation of foreign direct investment restrictions may facilitate Chinese investment, but geopolitical tensions persist. India's automobile companies are successfully penetrating the African market, utilizing locally sourced components. This could enhance trade and bolster efforts to decarbonize transportation in both regions.
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