BYD Proposal To Invest $1 Billion In India For EV Manufacturing Faces Hurdle: Report

Chinese electric vehicle (EV) giant Build Your Dreams (BYD) is eyeing expansion of its operations in India. The carmaker started its journey in the Indian passenger vehicle space with the all-electric e6 MPV in 2021 before expanding its line-up with the new Atto 3 SUV last year. The carmaker is also expected to launch the Seal electric sedan in the market in the coming months. However, the company has more ambitious plans for India. As per a Reuters report, BYD has partnered with Hyderabad-based Megha Engineering and Infrastructures to submit $1 billion (Rs 8,207 crore approx) investment proposal to the government. The two companies have already been partners in the Indian commercial vehicle market manufacturing buses under the Olectra brand since 2013.

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BYD, one of the world’s largest manufacturers of EVs and plug-in hybrids, is eyeing setting up manufacturing facilities in India in a bid to scale up its operations in the coming years. The company’s long-term goal for India is to reportedly offer a full line-up of models ranging from hatchbacks to luxury cars and includes setting up a battery manufacturing facility and public charging facilities in the country.

BYD has presently invested about $ 200 million into its India operations.

The investment plans however have hit a hurdle with reports suggesting that policymakers are not keen on allowing companies from China to invest in India. The concerns reportedly include the Indian partner being just a puppet with the Chinese firm calling all the shots. Similar concerns have been raised by the sizeable investment plan now tabled by BYD. The Chinese carmaker has already invested about $ 200 million into the Indian market.

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The government has already implemented more stringent FDI norms following the border tensions with China in recent years. The same norms also saw Great Wall Motors scrap their plans for India after multiple delays in investment approvals. The Chinese firm had been a big presence at the 2018 Auto Expo though subsequent plans to takeover GM’s Talegaon plant fell through last year with the term sheet not renewed.

MG Motor India too has been affected by the stringent monitoring of FDI from its parent entity with the company planning to hand over a majority of its stake to Indian suitors in a bid to raise funding.

Source: Reuters, TOI