EV Prices in India to Rise as China Cuts Lithium-ion Battery Export Rebates
Automobile
M
Moneycontrol•20-01-2026, 11:23
EV Prices in India to Rise as China Cuts Lithium-ion Battery Export Rebates
- •China has reduced export tax rebates on lithium-ion batteries from 9% to 6%, effective April 1, with plans for full withdrawal within a year.
- •This policy change by Beijing is expected to increase electric vehicle prices in India.
- •Indian EV manufacturers, heavily reliant on Chinese suppliers like BYD and CATL, will face challenges.
- •Batteries constitute over a third of an EV's total cost, meaning higher battery prices will impact manufacturers' margins or consumer prices.
- •The market impact is anticipated within two weeks, with a rush to build inventory expected before the rebate cut.
Why It Matters: China's reduction in lithium-ion battery export rebates will likely increase EV prices in India.
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