The government has imposed limitations on market access for BYD, further dampening the Chinese EV maker’s India manufacturing plans. In reference to BYD, commerce minister Piyush Goyal recently stated, “India has to be cautious about its strategic interests, who we allow to invest.”
- Officials worried about “strategic interests” and whom they can “allow to invest”
- BYD will likely continue to import its cars as CBUs in India
Government says “no” to BYD expansion in India
In a recent Bloomberg Television interview, Goyal said, “As of now, it is a no” to the prospect of BYD further investing in India to secure a larger presence in the domestic car market. In July 2023, the government rejected a $1 billion (Rs 8,200 crore) investment proposal for a new BYD manufacturing plant built in partnership with Hyderabad-based Megha Engineering & Infrastructures.
Great Wall Motor backed out from India due to regulatory issues
BYD isn’t the only Chinese EV manufacturer to have faced major regulatory hurdles in India. Great Wall Motor had big plans to enter India in 2020, which primarily entailed acquiring GM India’s Talegaon plant. However, a protracted Memorandum of Understanding with the Mumbai government brought Great Wall Motor’s India entry plans to an indefinite halt.
The government has explained its stance by putting forth concerns regarding the hazy ownership structures of Chinese companies and their potential ties with the Chinese government and military, as well as issues concerning China being a non-market economy that may distort competition with state subsidies and loan write-offs.
BYD’s current standing in India
At present, BYD’s India portfolio comprises the Seal sedan, Atto 3 and Sealion 7 SUVs, and the eMax 7 MPV, which are fully imported. Given the government’s stance, BYD will likely continue selling completely built units of its models in our country.
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