China files WTO complaint against India over ‘unfair advantage’ in EV and battery subsidies — Here's what we know

China has filed a complaint with the World Trade Organisation (WTO) over India's subsidies in the electric vehicle (EV) and battery manufacturing sectors, alleging that the incentives give domestic industries an unfair competitive advantage, Reuters reported, citing the Chinese Commerce Ministry on Wednesday, 15 October 2025.

The Chinese Commerce Ministry reportedly claimed that India's measures provide an ‘unfair competitive advantage’ to its industries and undermine China's national interest in international trade.

The ministry also highlighted that China will take “firm measures” to safeguard the rights and interests of its domestic industries.

According to an earlier report, China accounted for nearly two-thirds of global EV sales, contributing almost 1.3 million units, as per data from Rho Motion, a market research firm.

China's complaint to the WTO comes amid media reports that India may launch a National Critical Mineral Stockpile (NCMS) programme, which aims to ensure the availability of rare earth elements in the country.

India's mineral stockpile programme

According to a report by The Economic Times, the Indian government is set to launch a National Critical Mineral Stockpile (NCMS) programme.

The programme aims to ensure the availability of rare earth elements in the country and promote the expansion of domestic rare earth mineral production.

These rare earth minerals are essential for the production of electric vehicles, wind turbines and other green energy technology developments. This move may potentially turn out in India's favour after China's decision to impose restrictions on the export of these elements.

Subsidies in India

NITI Aayog's portal for electric vehicles indicates that India extends a series of EV incentives to promote electric mobility in the country.

Subsidies on two-wheelers — ₹15,000 per kWh up to 40% of the cost of the electric vehicle, approximately 2 kWh size of battery.

Subsidies on three-wheelers — ₹10,000 per kWh, approximately 5 kWh size of battery.

Subsidies on four-wheelers — ₹10,000 per kWh, approximately 15 kWh size of battery.

Subsidies on E-buses — ₹20,000 per kWh, approximately 250 kWh size of battery.

India is also promoting Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) to promote electric mobility. Currently, the government is implementing FAME-II for a three-year period.

Although India does not directly give concessional import duties to foreign automakers, the government approved a Scheme for Manufacturing of Electric Cars (SMEC) with incentives for companies in 2024. These concessional import duties will be granted if the companies open new greenfield electric vehicle manufacturing facilities in India.