In a recent development, Chinese electric vehicle (EV) manufacturer BYD has officially denied reports suggesting it planned to set up a manufacturing plant in India. The company labelled the news “false” and clarified that no such investment or agreement had been finalised.
The Controversy
According to recent reports from a number of media outlets, BYD intends to invest approximately $10 billion to set up a production facility in Hyderabad, Telangana. According to the reports, talks with the Telangana government were progressing and possible locations for the facility had been found. However, BYD denied these allegations and called them unfounded in a statement posted on its official WeChat account.
BYD explained that there were no official commitments or agreements made for making in India, attributing the rumors to speculative reporting.
BYD’s Current Presence in India
While BYD has been actively expanding in global markets like Southeast Asia, South America, and Europe, it has not announced any large-scale manufacturing venture in India. Currently, the company operates through its subsidiary BYD India, primarily focusing on electric buses and passenger vehicles.
Investment Hurdles in India
Although it commands a significant market share in the Indian EV market, BYD has encountered regulatory issues. In 2023, the Indian government turned down an estimated $1 billion investment in partnership with Megha Engineering and Infrastructures Ltd (MEIL) to set up an EV manufacturing plant in Telangana. The plan to build a manufacturing unit with an estimated investment of Rs. 8,200 crores was rejected because of security fears and regulatory issues.
Conclusion
As the Indian EV market continues to grow, BYD’s struggle to secure manufacturing capabilities highlights the challenges faced by foreign investors amid India’s cautious stance on Chinese investments. Despite the recent denials, the story underscores the complex landscape for international businesses seeking to establish roots in India.
