Exclusive: BYD tells India partner it wants to drop $1 billion EV investment plan, sources say

exclusive:-byd-tells-india-partner-it-wants-to-drop-$1-billion-ev-investment-plan,-sources-say
Exclusive: BYD tells India partner it wants to drop $1 billion EV investment plan, sources say

China’s BYD (002594.SZ) has informed its India joint-venture partner that it will abandon plans for a $1 billion investment to manufacture electric cars in India. The decision comes after New Delhi scrutinized the investment proposal, citing security concerns. BYD and its partner, Megha Engineering and Infrastructures, had submitted a joint proposal to the Indian government in April. BYD executives have communicated their intention to drop the investment, although the formal withdrawal of the proposal has not yet occurred. BYD, China’s largest EV maker, has declined to comment on the status of the investment proposal. The company has been present in India for 16 years, selling passenger cars and electric-drive buses.

The Indian government, specifically the finance, external affairs, and home ministries, has not responded to requests for comment. Megha Engineering, based in Hyderabad, has urged BYD to wait for more clarity before abandoning the manufacturing plan. BYD had anticipated that its investment proposal would face political challenges due to the scrutiny of Chinese investment in India. The proposal included features such as voice-activated commands in Indian languages and data storage within India. BYD had planned to commence production in India by 2025.

India began subjecting Chinese investments to closer scrutiny in 2020 following border clashes between the two countries. Great Wall Motor also shelved its $1 billion investment plan in India after failing to obtain clearances from the Indian government. The final decision on BYD’s investment proposal will be made by the Indian ministries of trade and heavy industries.

BYD entered the Indian market in 2007, initially producing batteries and components for mobile phone makers. In 2013, the company established a joint venture with Megha Engineering to manufacture electric buses. BYD has already invested over $200 million in India and currently sells the Atto 3 electric SUV and the e6 EV to corporate fleets. The company plans to launch sales of its Seal electric sedan later this year. Since starting sales in 2022, BYD has sold approximately 1,950 cars in India.

India’s electric vehicle market is small but growing, with Tata Motors dominating sales. Electric models accounted for less than 2% of total car sales in 2022, but the government aims to increase this to 30% by 2030.

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Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

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