New Delhi: Union Commerce Minister Piyush Goyal has recently made it clear that India is not yet ready to welcome Chinese electric vehicle (EV) giant BYD, citing national security and fair trade concerns.
While speaking about BYD’s India entry, Goyal said that the country remains cautious about who it permits to invest in its critical sectors, especially when it comes to companies from countries with which it has sensitive strategic equations.
When asked whether India would extend a red-carpet treatment to BYD akin to Tesla, Goyal responded firmly: “We need to be convinced that they will play by the rules of the land.”
He warned of increasing evidence of “third-country dumping” and unfair market practices, suggesting that BYD and similar firms may not be adhering to globally accepted norms, according to reports.
The Union Minister Goyal further emphasized that foreign investments must align with India’s strategic and security interests and that the government will remain vigilant in scrutinizing proposals from entities that raise concerns on these fronts.
In response to speculation, BYD has denied reports claiming it is setting up a manufacturing facility in India. In a statement posted on its official WeChat account, the company called the news “untrue,” denying any finalized plans or agreements to invest.
This comes after several reports claimed BYD was preparing to inject nearly $10 billion into building a plant in Hyderabad.
Although BYD has maintained a presence in India’s EV market for several years, the company has yet to establish a domestic production base. Its vehicles are currently imported from China, attracting steep import duties that limit its competitiveness in the price-sensitive Indian market.
Efforts to localize operations have faced significant hurdles. In 2023, the Indian government turned down a $1 billion investment proposal from BYD and its Indian partner, Megha Engineering and Infrastructures Ltd (MEIL), citing regulatory concerns tied to Chinese investments.
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