‘It’s a no for now’: Piyush Goyal clears air over BYD’s plans to enter India 

Union Commerce Minister Piyush Goyal said India will not open doors to Chinese EV giant BYD as of now. Speaking on whether India will roll out red carpet for BYD on similar lines to Tesla at the India Global Forum, Goyal said “we need to be convinced that they will play by the rules of the land”. 

Explaining the government’s stance, Goyal pointed out “third country dumping” and added that more and more instances are coming up of how several unfair practices are playing out on the ground. 

He also highlighted that “we need to be cautious about whom we allow to invest keeping in mind the country's strategic and security interests.” 

Meanwhile, BYD has refuted claims suggesting it intends to establish a manufacturing plant in India. The company dismissed the reports as “untrue” in an official statement posted on its WeChat account. 

Earlier, media outlets reported that BYD plans to invest approximately $10 billion to develop a production facility in Hyderabad. However, the company clarified that no such agreement or investment decision has been finalised. 

Despite having operated in India for several years, BYD is yet to set up a domestic manufacturing facility. Currently, it imports electric vehicles from China, resulting in high import duties that make its EVs more expensive and limit its market share. 

A local production unit would significantly cut costs, potentially boosting sales and making BYD more competitive in India’s growing EV sector. 

For the past two years, the company has been exploring options to build a manufacturing plant in India. However, regulatory restrictions on Chinese investments have posed challenges. 

In 2023, the Indian government rejected a $1 billion investment proposal jointly submitted by BYD and its local partner, Megha Engineering and Infrastructures Ltd (MEIL), to set up an EV manufacturing plant.