Why are Chinese companies earning?

Sales of electric cars are increasing rapidly in India, and Tata Motors is at the forefront in this field. Mahindra & Mahindra is also going to play a big bet in the electric car segment, while Maruti Suzuki is also preparing to join this race. An important aspect amidst all this is that no matter which Indian company sells electric cars, Chinese companies are getting the major share of the profit from this market.

MG Motor India and BYD India, which are among the top-5 companies selling electric cars in India, are both Chinese companies. But the question arises that what is the connection of Indian companies like Tata, Mahindra, and Maruti with China?

Electric cars have a deep connection with China

A large part of the total cost of electric cars, about 30%, is the battery alone. The battery pack is the driving force of any electric car. Without a battery, an electric car is just a useless box. Indian companies are currently dependent on China for batteries and sales for their electric cars.

Tata Motors Battery Sourcing

Tata Motors sources battery packs for its electric cars from various Chinese companies. For example:

1. For Curvv EV:
   • Tata Motors sources battery packs from Chinese company Octillion Power Systems.
   • The cells used in this battery are made by Chinese company EVE.
2. For other electric vehicles:
   • Tata Motors also sources lithium ion cells from a Chinese company called Gotion.

Tata Motors is working on plans to have its own battery manufacturing facilities, but is not yet completely self-reliant.

Mahindra and Maruti: Use of BYD’s blade battery

Mahindra & Mahindra:

Mahindra has recently introduced born electric cars like BE 6 and XEV 9e. Along with powerful features, special technology has also been used in the battery in these vehicles.

Maruti Suzuki:

Maruti has showcased its electric car eVitara.

Both these companies have adopted the Blade Battery Technology of Chinese company BYD (Build Your Dreams) for their electric vehicles.

What is BYD’s blade battery technology?

Features of Blade Battery:

1. Design:
   • In a blade battery, the cells are designed as long blades instead of traditional cylinder cells.
2. Reliability:
   • This design reduces the possibility of damage to the battery cells.
3. battery life:
   • The Blade battery has a longer life and charges faster.
4. Security:
   • Blade batteries have better temperature control, making them safer and more durable.

Dependencies of Mahindra and Maruti:

Mahindra and Maruti have imported blade battery packs directly from BYD. This shows that despite the growth of the electric car industry in India, Indian companies have not yet become self-reliant in terms of batteries.

Due to dependence on China

1. Advanced Technology:

Chinese companies use world-class technology in battery manufacturing, due to which the quality of their batteries is better.

2. Low Cost:

Due to large-scale production in China, the cost of battery manufacturing is lower, making Indian companies finding it more profitable to import them.

3. Research and Development:

Chinese companies have made extensive investments in battery technology, the benefits of which they are now reaping in the global market.

Steps towards India’s self-reliance

However, in view of the increasing demand for electric vehicles in India, companies like Tata Motors, Mahindra, and Maruti Suzuki are planning to set up their own battery manufacturing plants. This will be an important step towards self-reliance.

Government Initiative:

• Electric vehicles and battery manufacturing is being promoted under the PLI (Production Linked Incentive) scheme.
• The government has approved several projects for setting up energy storage systems and lithium ion battery plants.