The Government has imposed restrictions on market access for BYD, further hampering the Chinese electric vehicle (EV) manufacturer's plans to establish a manufacturing base in India.

Referring to BYD, Commerce Minister Piyush Goyal recently stated, "India has to be cautious about its strategic interests, who we allow to invest."

Government rejects BYD expansion in India

In a recent interview with media sources, Goyal stated, "As of now, it is a no" in response to the possibility of BYD further investing in India to expand its presence in the domestic automotive market.

In July 2023, the Government rejected a US$ 1 billion investment proposal for a new BYD manufacturing facility, which was to be developed in partnership with Hyderabad-based Megha Engineering & Infrastructures.

Great Wall Motor withdrew from India due to regulatory challenges

BYD is not the only Chinese EV manufacturer to have encountered significant regulatory barriers in India. Great Wall Motor had announced ambitious plans to enter the Indian market in 2020, primarily centred around acquiring General Motors India's Talegaon plant.

However, prolonged delays in finalising a Memorandum of Understanding with the Maharashtra Government eventually stalled Great Wall Motor's entry plans indefinitely.

The Government has articulated its position by raising concerns about the opaque ownership structures of Chinese companies, their potential affiliations with the Chinese Government and military, and broader issues associated with China's designation as a non-market economy - particularly with regard to state subsidies and loan write-offs, which are perceived to distort fair competition.

BYD's current position in India

At present, BYD's product portfolio in India includes the Seal sedan, the Atto 3 and Sealion 7 SUVs, and the eMax 7 MPV. These models are fully imported as completely built units (CBUs).

In light of the Government's current policy stance, BYD is expected to continue retailing its vehicles in India through CBU imports.