‘No For BYD’: India Turns Down Investment Proposals from Chinese EV Manufacturer BYD

During a recent gathering at the India Global Forum, Piyush Goyal, the Union Commerce Minister of India, declared that the country will not be engaging with the Chinese manufacturer BYD this time around. He expressed further that the Indian government should ensure that the foreign investors strictly follow the country’s policies.

He also expressed his concerns over “third country dumping” and about various unfair practices happening in the market. The minister also said, “we need to be cautious about whom we allow to invest, thus aligning with the country’s strategic and security interests. 

This feedback emerged during the examination of foreign investments, particularly those originating from China. However, there were certain reports suggesting that BYD was aiming to establish a manufacturing facility in Hyderabad, and was planning to invest around $10 billion. 

BYD has officially denied these claims, terming them as ‘untrue’. The company further clarified that there is no formal agreement or investment decision made to set up a manufacturing facility in Hyderabad. 

BYD has been operating in India for the last many years, but still it doesn’t have its own manufacturing facility, which amounts to higher import duties on its EVs from China. 

Thus the increased costs made BYD less favourable in the rapidly growing Indian EV market. Thus manufacturing locally could significantly reduce costs and will help BYD to position their car competitively in the market.