BYD India, the Chinese EV maker, is waiting for “the right signal” to start local manufacturing of its vehicles in India. The company had submitted an investment proposal of $1 billion to the Indian government in partnership with a local firm to make electric cars in the country but has not received a green signal yet.
The Indian government had increased scrutiny of Chinese investments in India following the 2020 Galwan clash on the border.
Another Chinese automaker Great Wall Motor had to shelve its plans of an Indian foray following the increased scrutiny of Chinese investments.
“The ambition to start local manufacturing is always there but for that a lot of other things need to happen,” said Rajeev Chauhan, business head, BYD India, at the launch function of its vehicle eMax7 in New Delhi on Tuesday.
When asked if he has received any signal of easing restrictions on Chinese investments, Chauhan said: “We don’t have any direct signal as yet. We do hope things will become a little better. That is the time we would definitely like to think a little more on this subject.”
On the subject of local manufacturing, Chauhan also pointed out that the company needed to have a business case to build cars in India.
“Right now our numbers are in the region of 2,500 units annually. We have to reach a certain viable figure to think of starting local manufacture,” he said.
“The company is targeting to sell 10,000 units annually by 2026. The company sells imported vehicles that include e-SUV, the Atto3, an electric sedan, the BYD Seal and the new MPV eMax7 that is aggressively priced between ₹26.9 lakh and ₹29.9 lakh.
The company has received a homologation certificate for the Atto 3 and the eMax7, which will allow it to import in excess of 2,500 units as capped by the government on import restrictions. It currently operates out of a low-volume assembly line in Tamil Nadu, relying heavily on completely-built units. It is also considering introduction of a midsize SUV priced in the ₹15-25 lakh range in India around the second half of 2025.
