BYD may abandon its USD 1 billion India venture
As BYD confronts increased scrutiny from the Indian authorities, the company may decide to abandon its planned investment of one billion US dollars in India. It was reported earlier this month that BYD had discussed the possibility of making a one billion dollar investment in India to set up production facilities for electric vehicles and batteries.
NEW DELHI: China’s largest automaker BYD reportedly informed its Hyderabad-based joint venture partner Megha Engineering and Infrastructures that it would postpone plans for a fresh USD 1 billion investment to produce electric cars after Indian government officials scrutinised its investment application.
According to a Reuters story, during the initial examination of the plan put out by BYD, representatives from three Indian ministries, including finance and external affairs, expressed resistance and voiced what two Indian officials described as security concerns about Chinese investment.
It was unclear right away if BYD would change its mind, and as of Thursday, BYD had not formally withdrew the investment application from government consideration. The biggest EV manufacturer in China, BYD, refuses to comment on the situation.
BYD would become the second Chinese automaker to do so if it decides against making the projected investment. The largest SUV producer in China, Great Wall Motor Company, withdrew from the market after failing to secure a foreign direct investment (FDI) licence and announced its entry into the market in 2020 with a USD 1 billion investment.
BYD allegedly suggested investing USD 1 billion earlier this month to set up EV and battery production plants in India. The Atto 3 electric SUV and e6 electric sedan are already available in India thanks to BYD, which rivals Tesla in the global market for electric vehicles.
Comments are closed.