Graphic of the day: The battery trap

Beijing’s rebate cuts threaten India’s EV prices as Chinese battery import reliance surges to 79%

Last Updated: Jan 20, 2026, 15:26 IST1 min

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India’s reliance on Chinese lithium-ion batteries has hit a staggering 79 percent as of late 2025, with total imports climbing to $3.3 billion. Beijing’s move to slash export rebates (to 6 percent in April 2026 and 0 percent by 2027) threatens a sharp cost reset for Indian EV makers; as battery packs make up between 30-40 percent of the EV cost. With China dominating the supply chain, the end of these subsidies could signal a major uptick in battery prices.

First Published: Jan 20, 2026, 15:45

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