India’s EV-only strategy raises red flags over China dependence, warns auto industry veteran Rajan Wadhera. In a letter to Minister H D Kumaraswamy, he urges a diversified clean mobility plan including hybrids, biofuels, and hydrogen to reduce geopolitical and supply chain risks.
Raising concerns over India’s growing reliance on China for critical electric vehicle (EV) components, an auto industry veteran has written to Union Heavy Industries Minister H D Kumaraswamy urging a rethink of the country’s EV-only strategy. The letter calls for a diversified, multi-pathway approach to clean mobility, warning that China’s near-monopoly over rare earth elements and battery materials poses serious geopolitical and economic risks.
Rajan Wadhera, former president of the Society of Indian Automobile Manufacturers (SIAM), in a letter to Union minister for heavy industries HD Kumaraswamy, expressed concerns over aggressively pursuing an EV-only roadmap without first securing robust and diversified supply chains. He advocated for a broader clean mobility strategy that includes biofuels, strong hybrids, CNG, LNG, and hydrogen.
“Pursuing an aggressive EV-only strategy without securing robust and diversified supply chains may inadvertently deepen our strategic dependence on a nation that has often taken positions adverse to India’s geopolitical and economic interests,” he said.
He argued that India should adopt a diversified, multipathway approach to sustainable mobility, one that is tailored to our resource base, economic priorities, and strategic autonomy.
The letter comes amid an ongoing rare earth elements (REE) and magnet crisis in India following China’s export restrictions imposed on April 4. China dominates the rare earth magnet market—essential for EVs—controlling around 70% of global mining capacity and 90% of magnet production. While a conventional internal combustion engine (ICE) vehicle uses about 100 grams of rare earth magnets, an EV requires nearly 3 kilograms, the letter highlighted.
He said the trade restrictions are not uniform.
“While the trade restrictions may appear uniform on the surface, China’s actions often vary depending on the country, guided more by geopolitical calculus than trade fairness. Given its growing strategic alignment with Pakistan, including military supplies, this should be a serious cause of concern for India,” he said.
He warned that aggressively pursuing an EV-only roadmap, without securing robust and diversified supply chains, could leave India vulnerable to external shocks and strategic pressure.
Instead, the letter advocates for a broader clean mobility strategy that includes biofuels, strong hybrids, CNG, LNG, and hydrogen. “Biofuels, for instance, not only reduce emissions but also support farmer incomes and enhance energy security,” he said.
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This article was first uploaded on June four, twenty twenty-five, at forty-one minutes past eleven in the night.
