India may block BYD's US$ 1 billion EV plan

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

There have been reports of China's BYD planning a massive investment in the Indian market. The company is said to be interested in manufacturing EVs and batteries in India with an investment of US$ 1 billion. However, the government of India isn’t too keen on allowing the Chinese EV maker to set up shop in the country over security concerns.

The latest reports suggest that there is discomfort in the Home & External Affairs Ministries over the entry of Chinese companies in the wake of the ongoing border tensions. 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's role is reduced to a dummy, which doesn't have a say in the decision-making process and much control over the technology.

BYD is the largest producer of EVs and plug-in hybrid vehicles. Earlier, the company submitted a proposal to form a joint venture with Hyderabad-based Megha Engineering and Infrastructures to manufacture an entire range of EVs, from hatchbacks to luxury models. It's the company's aggressive plans which have raised a few eyebrows in the government.

Besides automakers, Chinese consumer electronics, smartphones and telecom companies have also come under increased scrutiny in recent times.

Source: TOI