China has lodged a complaint with the WTO against India, claiming it has an 'unfair advantage' in subsidies for EVs and batteries.

China has lodged an official complaint with the World Trade Organisation (WTO) over India’s additional subsidies in the EV and battery manufacturing industries, indicating that these incentives are providing undue advantages to the domestic industries. This news was confirmed by Reuters, citing the Chinese Commerce Ministry on Wednesday 15 October 2025.
According to the Chinese Commerce Ministry, India’s subsidy advantages are providing unfair benefits to its industries and impacting China’s national interest in international business. The ministry also clarified that China is taking strict measures to protect the rights and interests of its local industries.
According to a previous report, China is responsible for two-thirds of International EV sales, registering sales of over 1.3 million units, as per Rho Motion, which is a market research firm. China’s complaints to the WTO have emerged just after media reports of India launching a National Critical Mineral Stockpile (NCMS) programme, which tells about the current availability of rare earth elements in the country.
India’s Mineral Stockpile Programme
This programme tells about the real-time availability of rare earth elements in the country and is also developed for the expansion of domestic rare earth mineral production. These rare earth minerals are very important for the production of electric vehicles, wind turbines, and other green energy technology components.
This strategic move is a masterstroke for India and could go in its favour after China’s decision to impose restrictions on the export of these elements.
Subsidies in India
According to NITI Aayog’s portal for electric vehicles, India provides a series of EV incentives to promote EV expansion in the country. These are described below:-
- Subsidies on Two-Wheelers: Rs 15,000 per kWh, up to 40% of the cost of electric vehicle, which amounts to approx 2 kWh size of battery.
- Subsidies on Three-Wheelers: Rs 10,000 per kWh, approx 5 kWh size of battery.
- Subsidies on Four-Wheelers: Rs 10,000 per kWh, approx 15 kWh size of battery.
- Subsidies on E-Buses: Rs 20,000 per kWh, approx 250 kWh size of battery.