BYD shelves its US$ 1 billion investment plan for India

BYD is the largest producer of EVs and plug-in hybrid vehicles.

China-based BYD has shelved its plan to invest US$ 1 billion in India. The carmaker has reportedly informed its joint-venture partner about its decision to pull out of the deal.

BYD had planned to partner with Megha Engineering and Infrastructures to set up an EV manufacturing unit in India. However, the company's investment proposal was rejected by the government of India.

Chinese investments have faced intense scrutiny since border tensions flared up between India and China back in 2020. There are growing concerns that some joint ventures arranged by Chinese companies get state support and are heavily controlled by the foreign partner. It is believed that the Indian entity does not have much of a say in the decision-making process.

BYD is the largest producer of EVs and plug-in hybrid vehicles. It had plans to build a range of EVs, from hatchbacks to luxury models in India. Currently, the company offers two models - the Atto 3 electric SUV, which was launched in November 2022 at a price of Rs 33.99 lakh. The second model is the e6 MPV, which is priced at Rs 29.15 lakh (ex-showroom). 

Source: ET Auto