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.