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In a recent development, India’s Commerce Minister, Piyush Goyal, announced that the government has denied Chinese electric vehicle (EV) manufacturer BYD’s proposal to expand operations in India. This decision follows the rejection of BYD’s $1 billion investment plan in partnership with Hyderabad-based Megha Engineering and Infrastructures Ltd (MEIL) in 2023, citing national security concerns.
Despite these challenges, BYD has maintained a presence in the Indian market through the import of fully built-up units. The company’s portfolio includes models like the Atto 3 SUV and the e6 MPV. In the fiscal year 2024-2025, BYD reported sales of 3,401 units in India, marking a 90.32% growth compared to the previous year.
The Indian government’s cautious approach towards Chinese investments, especially in the EV sector, contrasts with its openness to other international players. For instance, efforts have been made to attract investments from companies like Tesla, highlighting a strategic differentiation in foreign investment policies.
While BYD remains interested in establishing manufacturing operations in India, the company has not received clear indications from the government regarding the easing of investment regulations. This situation underscores the complexities foreign companies face when navigating India’s investment landscape, particularly those from nations sharing land borders with India.
