Foreign investments have been prioritized in India since they contribute to the exchange of currency and technology. In the automobile industry, international brands are frequently urged to establish a manufacturing plant before entering the market. However, recently, the Indian government has opposed BYD’s investment in India! So let’s look at BYD’s prospects in India!
What’s Cooking?
BYD, a Chinese automaker, is actively seeking to invest in India. Over the previous two years, BYD has been in talks with the Indian government. In July 2023, BYD intended to establish a local manufacturing unit in collaboration with Hyderabad-based Megha Engineering & Infrastructure. However, the government rejected BYD’s investment request of Rs 8,200 crore. Now, in a recent interview with Bloomberg, Commerce Minister Piyush Goyal confirmed that India continues to reject BYD investment. The minister firmly stated, ‘As of today, it’s a no’, effectively ending the argument over whether Brand will begin local production or not.
According to the Commerce Minister, India must be cognizant of its strategic interests and who is permitted to invest in the country. The remark was supported by the fact that India made the choice with the country’s strategic and security interests in mind. India has been fighting Chinese automakers because of their potential ties to the Chinese government and military. In fact, Great Wall Motor Co. was denied entry into India in 2020, and the brand ended discussions after failing to meet regulatory requirements. As of now, BYD will only sell products via CBU routes.
BYD In India
Currently, BYD is operating in India by introducing CBU models. The brand imports its models from China and sells them in India. Today, we have multiple models on sale, including the recently launched BYD Sealion 7. The brand also has a performance-oriented sedan – the Seal. However, the sales figure does not do justice to the quality of products or value-for-money proposition Brand is offering. Buyers are keen to buy BYD cars, but a lack of service centres is a major concern. Having said that, setting up its own service centers and manufacturing plants can help BYD to grow its presence in the country.