The Narendra Modi government has trashed Chinese automaker BYD’s proposal to set up a $1 billion manufacturing plant in India, reported Economic Times on Saturday.
The Chinese EV giant had earlier submitted a proposal to build EVs as well as electric batteries in India in partnership with an Indian EV company Megha Engineering and Infrastructure Ltd.
Security reasons cited for rejection
The Chinese plan to manufacture EVs and batteries in India encountered “security concerns”, the report said. The company had initially planned to manufacture 15,000 electric cars in India annually.
“Security concerns with respect to Chinese investments in India were flagged during the deliberations,” an Indian official was quoted as saying by Economic Times. Another official cited ‘existing guidelines’ to claim that such Chinese investments were not possible.
BYD’s presence in India
Times Now reports BYD already has a significant presence in the Indian automobile market. In 2023, it aims to sell at least 15,000 units of EVs. Furthermore, it also revealed its plans to expand its distribution network in India and upgrade manufacturing capacity.
However, those plans seemingly stand dashed now as New Delhi seems adamant about keeping Chinese players away from India’s major sectors, including telecom, automobile and cyberspace.
The report says BYD currently has a manufacturing facility operational in India’s southern state of Tamil Nadu, with a production capacity of 10,000 units per year.
(As Published by WION NEWS)
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