BYD plans to drop US$ 1-billion EV investment plan, informs India JV partner: Report

In the initial review, officials from three Indian ministries, including finance and external affairs, raised what two Indian officials described as security concerns about investment from the Chinese company and signalled opposition.

Autocar Pro News Desk By Autocar Pro News Desk calendar 28 Jul 2023 Views icon3274 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Representative image

Representative image

BYD has told its India partner that it aims to drop its plans for a US $ 1 billion investment to manufacture electric cars, as its investment proposal faced scrutiny from New Delhi, Reuters reported, citing two persons in the know.

BYD and its partner, privately held Megha Engineering and Infrastructures had given a proposal to the Indian government in April to jointly build electric cars in India, Reuters reported earlier this month.

But in the initial review, officials from three Indian ministries, including finance and external affairs, raised what two Indian officials described as security concerns about investment from the Chinese company and signalled opposition, Reuters noted.

BYD executives told Megha Engineering last week that the battery and EV maker wanted to drop pursuit of the investment, according to the two people with knowledge of that exchange, the newswire said.

As of Thursday, the Chinese EV maker BYD had not formally withdrawn the investment proposal from government review, the two officials with knowledge of the review said.

In a statement to Reuters, the company said it has had a presence in India for 16 years, selling both passenger cars and electric-drive buses.

India's finance, external affairs and home ministry did not reply to an email seeking comment. Megha Engineering did not respond to request to comment.

BYD had proposed starting production in India by 2025, the people familiar with the plan said.

India began subjecting investment from China to closer scrutiny in 2020 amid a series of border clashes between the two countries

BYD, the world's largest producer of EVs and plug-in hybrid vehicles, entered the Indian market in 2007 producing batteries and components for mobile phone makers.

In 2013 it started building electric buses in India with Megha Engineering, under a joint venture company called Olectra Greentech (OLEC.NS).

BYD has sold about 1,950 cars in India since starting sales in 2022, according to government registration data.

 

 

 

 

RELATED ARTICLES
Exclusive: M&M readies updated XUV 400, XUV 300 EV in 2024 to challenge Tata Motors' Nexon EV

auther Autocar Pro News Desk calendar10 Dec 2023

The XUV 300 EV is likely to be powered by a 35 KW Farasis battery which is expected to have a range of about 375 kms per...

AIDA Engineering harnesses IoT for metalworking transformation

auther Autocar Pro News Desk calendar10 Dec 2023

The company is is set to unveil its cutting-edge DSF-N2-4000A series servo control system at IMTEX 2024 in Bangalore, In...

Triumph Motorcycles celebrates 10 Years In India, unveils New Tiger 900, Stealth Limited Editions

auther Autocar Pro News Desk calendar09 Dec 2023

The new line-up includes the Tiger 900 GT, and Rally Pro, each providing a significant step-up in performance and specif...