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

China’s BYD, which with its India partner Megha Engineering and Infrastructures proposed to the government its plan to jointly build electric cars in the country in April, has now reportedly told its JV partner that it would shelve the said plans. BYD is reportedly stepping back from its $1-billion investment plan to build EVs after its proposal faced scrutiny from the government. 

This development comes as officials of three ministries including finance and external affairs raised scrutiny concerns about Chinese investment in the initial review. 

According to a report in news agency Reuters, BYD executives told Megha Engineering last week that they want to drop the pursuit of the investment. Citing officials in the know, the report added that BYD had not formally withdrawn the proposal from government review. 

BYD told the news agency that it has had a presence in India for 16 years, and has sold both passenger cars and EV buses. 

Megha Engineering had urged BYD to wait for more clarity last week before dropping its plans, as per the report. The report stated that BYD had understood its investment proposal would be politically charged because of scrutiny of Chinese investments in India. 

BYD had proposed starting production in India by 2025. 

An earlier report by the agency suggested that BYD planned to build a full line-up of EVs in India from hatchbacks to luxury models. BYD currently markets the Atto 3 electric SUV and the e6 EV to corporate fleets and plans to launch sales of its Seal electric sedan later this year.

Another Chinese company, Great Wall Motor had shelved its plans to invest $1 billion after failing to receive clearances from the government. 

(With Reuters inputs)

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