The Morning Brief

Why Chinese Cos Have Been “Indianising” Themselves.

19 snips
Jan 14, 2025
In this engaging discussion, Sharmistha Mukherjee, an automotive industry expert from ET, delves into how Chinese companies are adopting 'Indianisation' strategies to navigate complex market dynamics. She explores how geopolitical tensions shape these partnerships and the government's role in demanding local leadership. The conversation also covers the challenges faced by brands like BYD and MG Motor in establishing a foothold in India’s automotive sector, while addressing the critical balance between trade deficits and security concerns.
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INSIGHT

Indianization of Chinese Companies

  • Chinese companies are embracing "Indianization" due to unwritten government rules.
  • These rules require partnerships with Indian companies, Indian board members, and ideally, Indian top management.
ANECDOTE

Examples of Indianization

  • Haier, Hisense, and Media are seeking Indian partners or appointing Indian directors.
  • BYD, an EV maker, faces challenges getting Indian visas for its Chinese board members.
ANECDOTE

SAIC and JSW Partnership

  • SAIC Motor, a Chinese carmaker, partnered with India's JSW Group.
  • JSW MG Motor India now has majority Indian ownership after a restructuring.
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