India has officially denied market access to Chinese EV maker BYD, even as it actively seeks investment from US-based Tesla. At the India Global Forum in Mumbai, Commerce Minister Piyush Goyal said, “As of now, it is a no,” citing concerns related to India’s strategic interests.
He also highlighted that “we need to be cautious about whom we allow to invest keeping in mind the country’s strategic and security interests.”
His remarks come amid ongoing border tensions and geopolitical concerns surrounding China’s growing influence in the Indian Ocean and neighboring regions.
Although BYD has denied reports about plans to establish a manufacturing facility in India, earlier media coverage had suggested the company intended to invest nearly $10 billion in a Hyderabad-based plant with a target capacity of 600,000 units annually by 2032.
In an official statement on WeChat, BYD dismissed these reports as “untrue.”
Despite having operated in India for several years, BYD has yet to establish a local manufacturing base. It currently imports electric vehicles (EVs) from China, incurring high import duties that impact pricing and limit its market share. Local production could significantly reduce costs and boost competitiveness in India’s growing EV sector.
In 2023, India rejected BYD and MEIL’s $1B EV plant proposal due to concerns over Chinese investments.
While local manufacturing is on hold, BYD is expanding in India via CBU imports, offering models like the Atto 3 and Seal. Despite high import duties, BYD saw 90% growth in FY25, selling 3,401 units.
The company is now targeting Tier-II cities and expanding its dealer network, though a local plant remains uncertain amid regulatory hurdles.
