Just over a week ago it was announced that BYD (Build Your Dreams) - one of the largest EV manufacturers in the world, had proposed a $1 billion investment in India to set up an EV and battery manufacturing plant in the country in partnership with Hyderabad-based Megha Engineering and Infrastructures Ltd.
Now, we have learned that BYD's proposal has been rejected by the Indian government!The two companies had in their application to the Department for Promotion of Industry and Internal Trade (DPIIT) proposed to set up an electric vehicle plant in Hyderabad.The DPIIT had sought opinions from other departments on the investment proposal.
"Security concerns with respect toChinese investments in India were flagged during the deliberations," one of the officials told ET.
"Existing rules do not allow such investments," a second official who was involved in the discussions said.In its proposal to the DPIIT, the venture is claimed to have made a pitch to manufacture 10,000-15,000 electric cars a year from the facility.
Megha was putting up the capital while technology and know-how was to come from BYD, one of the persons associated with the plan had revealed to ET.Ferrari 296 GTB Review: Hybrid and a V6 but a true Ferrari? | TOI AutoThe move comes amid the continuing tensions between India and China.
Another Chinese four-wheeler manufacturer Great Wall Motor previously tried to enter the Indian market with a similar proposed investment of $1 billion.
However, GWM also had to shelve its plans to enter India in July last year after failing to obtain approvals from the government, despite waiting for about two and a half years.That said, BYD does currently operate in the Indian market, offering two fully-electric cars - Atto 3 and e6.
The manufacturer now plans to launch its Seal EV in the Indian market by the end of this year.
The BYD Seal EV was showcased at the 2023 Auto Expo earlier this year, and could also arrive through the same SKD (semi-knocked down kits) route as the Atto 3 and e6.What do you think about Modi govt's decision of rejecting BYD's massive $1b proposal for setting up a manufacturing plant in India? Let us know in the comments down below.