Pune Media

BYD to focus on imports, shelves car factory plans in India over FDI roadblocks

Chinese electric vehicle (EV) manufacturer BYD has decided to adopt an “import-only strategy” for the Indian market, a year after its $1-billion investment proposal to set up a car manufacturing plant was rejected by the Indian government. Under the country’s new EV policy, BYD will refrain from establishing a factory in India and will instead import its vehicles.

As per a TOI report, Rajeev Chauhan, head of BYD’s electric passenger vehicle business in India, confirmed the shift while launching the company’s multipurpose vehicle eMAX 7, priced between Rs 26.9 lakh and Rs 29.9 lakh (ex-showroom). Despite hefty customs duties, BYD aims to sell 3,500 units this year, marking a 40% increase from last year’s 2,500 units. “We feel that even with these numbers, we will be able to make our brand popular,” said Chauhan.

BYD currently imports three models from China and believes this strategy will suffice in the short term. However, Chauhan hinted at possible future investments, stating that the company remains open to expansion opportunities. “When the time comes (for investments), when the situation is available, yes, why not?” he added.

Although the company’s decision to stick with imports leads to higher vehicle prices, Chauhan emphasized that BYD’s strong supply chain has allowed it to manage these costs effectively. He admitted that locally manufacturing the vehicles would have made them cheaper but noted, “Even with that kind of price structure, with the support of BYD, and its strategy on the value chain and the supply chain, we are able to price them at the right place.”

Rumors suggest that BYD is in talks with Indian corporate houses for potential alliances, similar to MG Motor’s partnership with JSW Group. However, the company has yet to confirm these developments.

BYD’s cautious approach reflects the challenges posed by India’s evolving EV policy, as well as the complexities of fulfilling the commitments required for local manufacturing.



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