On June 25, 2026, Chinese media outlet Guancha.cn reported that in India, Chinese companies are making great strides even under the country's government restrictions, and Japanese manufacturers are facing strong pressure.

The article stated that since the 2020 border dispute, although the Indian government has strictly restricted the entry of Chinese capital, companies from both China and India continue to explore new forms of cooperation, mainly in the electric vehicle (EV) sector.

It then introduced that Santosh Pai, a New Delhi-based partner at the international law firm Dentons Link Legal, stated that cooperation with China is inevitable for the expansion of India's manufacturing industry, and for Chinese companies, the Indian market, with its immense potential, is an undeniable presence.

The article also mentioned that Chinese companies are establishing a foothold in the local market through supply chain cooperation, and are starting to enter fields previously dominated by Japanese and German companies. For example, automotive parts manufacturer Uno Minda has established a joint venture with Shenzhen Inovance Technology, a company specializing in industrial automation solutions, to produce powertrain products.

Furthermore, the article conveyed that the rise of these Chinese players is becoming a significant pressure for Japanese automakers, who have not experienced direct competition with Chinese brands in the Indian market for many years, as it represents a drastic change in the competitive environment.

The article also stated that while facing new obstacles such as the termination of technology licensing cooperation with some Chinese companies due to the US-China conflict and issues with visa issuance, Indian companies have accumulated know-how through their previous cooperative relationships and are now able to develop independently.

On the other hand, it reported that they still have no choice but to rely on imports from China for manufacturing equipment and raw materials. (Editor/Translator: Kawajiri)