Our Bureau
New Delhi
Indian and Chinese companies are moving rapidly to cement partnerships in electronics and automobiles following last week’s meeting between Prime Minister Narendra Modi and Chinese President Xi Jinping. The leaders pledged to improve bilateral ties, a development that has lifted business sentiment at a time of mounting pressure from US tariff measures.
Industry executives said Haier’s proposed plan to sell 49% in its Indian subsidiary has “gained tremendous pace” in the past two days. Earlier-stalled talks with industrialist Sunil Mittal have now revived, with Haier expected to retain 49% equity while 2% will be set aside for employees. Meanwhile, Dixon Technologies is preparing to file its Press Note 3 application for a joint venture with Chongqing Yuhai to manufacture precision components like laptop enclosures. The company is also awaiting approvals for pending tie-ups with HKC and Vivo.
The automotive sector is also optimistic. Import restrictions imposed in April on heavy rare earth magnets from China had disrupted electric vehicle production, particularly for Bajaj Auto. “There is expectation things will move after the PM visit,” said an auto component executive. Ashok Leyland has already signed a long-term exclusive partnership with China’s CALB Group to co-develop next-generation batteries for mobility and industrial use. Hinduja Group’s Shom Hinduja and Ashok Leyland MD Shenu Agarwal were in China earlier this week to finalise the pact.
Executives from Dixon, Micromax-owned Bhagwati Products and PG Electroplast are planning trips to China to push forward stalled discussions. “The mood is very upbeat right now in Chinese companies as far as India is concerned,” said Rajesh Agarwal of Bhagwati Products.
Analysts note the thaw is attracting Chinese capital as well. Aalok Shah of Rothschild & Co said technology investors who were earlier reluctant now expect approvals to move faster.
