BYD Officially Denies $10 Billion EV Investment in India

Reports suggested negotiations with the Telangana government for land near Hyderabad, which excited many in the industry. However, Today, BYD clarified via its WeChat account that no such plans were finalized, dashing hopes for immediate expansion.

Source – https://mp.weixin.qq.com/s/XTwdirQSLtmkhl8NlyvWIQ?poc_token=HFPq62ejC1Tn1JgLJaOBuJ1oupa2FW9I5walZtc0

The speculation began earlier this week when several outlets, citing unnamed sources, claimed the Chinese automaker was in advanced talks to build one of India’s largest EV facilities.

The plant was reportedly aimed at boosting BYD’s production capacity to compete with rivals like Tesla and domestic players such as Tata Motors. However, in a statement shared with Business Standard and Tech in Asia, BYD stated unequivocally: “We do not comment on market speculation and can confirm that no agreements have been signed for the aforementioned investment.”

This denial comes amid heightened scrutiny of Chinese investments in India, where geopolitical tensions have led to stricter regulatory hurdles for companies from China.

In 2020, India tightened foreign direct investment (FDI) rules for neighboring countries, requiring government approval for even minor stakes—a policy that disrupted BYD’s previous plans to expand its local partnership with Megha Engineering. That joint venture, focused on EV manufacturing, faced delays due to prolonged scrutiny from New Delhi.

To understand the context, it’s worth noting BYD’s current operations in India. Through its subsidiary, BYD India, the company focuses on electric buses and passenger vehicles but imports EVs from China, facing high import duties that limit its market share. This makes local manufacturing crucial, yet past attempts have faced resistance.

In 2023, India rejected a $1 billion proposal by BYD and Megha Engineering for an EV plant, citing security concerns, as reported by Reuters. This history suggests that geopolitical dynamics, particularly India-China relations, might be at play, adding complexity to BYD’s plans.

Industry analysts I’ve spoken to suggest BYD’s caution reflects broader challenges faced by Chinese firms in India. “The regulatory environment remains unpredictable,” said one Mumbai-based auto sector consultant. “BYD may be waiting for clearer signals from Indian authorities before committing to large-scale investments.”

Despite the setback, BYD hasn’t entirely exited the Indian market. The company already sells electric cars, buses, and components in the country, though its presence is dwarfed by domestic brands. India’s EV sector, while still nascent, is seen as a critical growth market, with the government targeting 30% electric vehicle penetration by 2030.

For now, BYD’s denial leaves unanswered questions about how it plans to scale its ambitions in India—or whether geopolitical headwinds will continue to stall its progress. As the global EV race heats up, this development underscores the delicate balance companies must strike between expansion aspirations and regulatory realities.