Chinese suppliers for electric vehicle (EV) companies in India, especially of lithium ion battery cells which account for 35-40 per cent of the cost, find technology tie-ups more attractive than a joint venture with a local player owing to the government’s stringent FDI rules.
A senior executive of an EV company which is planning to set up a lithium cell battery plant said Chinese companies are ready ‘to give you technology for which they receive technical fees paid upfront, royalty fees, commissions and installations by manpower and raw material cost’.
“But,” he added, “They don’t want a JV model because
Chinese suppliers for electric vehicle (EV) companies in India, especially of lithium ion battery cells which account for 35-40 per cent of the cost, find technology tie-ups more attractive than a joint venture with a local player owing to the government’s stringent FDI rules.
A senior executive of an EV company which is planning to set up a lithium cell battery plant said Chinese companies are ready ‘to give you technology for which they receive technical fees paid upfront, royalty fees, commissions and installations by manpower and raw material cost’.
“But,” he added, “They don’t want a JV model because
